REG - Glanbia PLC - Glanbia Full Year 2024 results
26/02/2025 07:15
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RNS Number : 4512Y Glanbia PLC 26 February 2025
Glanbia Full Year 2024 results
Strong performance with adjusted EPS(1) growth of 6.8% constant currency
26 February 2025 - Glanbia plc ("Glanbia", the "Group", the "Company", the
"plc"), the 'Better Nutrition company', announces its preliminary results for
the 2024 financial year ended 4 January 2025 ("2024" or "FY24").
FY24 Highlights(2):
· Group Financial Performance:
o Adjusted EPS of 140.03 $cent (2023: 131.37 $cent) representing growth of
6.8% constant currency (up 6.6% reported) in line with guidance;
o Group revenues of $3.8 billion(2) (2023: $3.6 billion(2)) representing an
increase of 5.8%(2), pro forma constant currency;
o Group EBITDA pre-exceptional of $551.3 million (2023: $493.4 million)
representing an increase of 11.8% constant currency (up 11.7% reported);
o Group EBITDA margin pre-exceptional of 14.4% (2023: 13.6%(2)) representing
an increase of 80bps;
o Basic EPS of 63.21 $cent (2023: 130.41 $cent) representing a decrease of
51.5%;
o Operating Cash Flow ("OCF") conversion of 88.0% (2023: 90.4%);
o Year-end net debt to adjusted EBITDA ratio of 0.81 times (2023: 0.50
times);
· Glanbia Performance Nutrition ("GPN"):
o Revenue growth of +0.5% constant currency with volume +2.9%, pricing
(4.2%) and the impact of the 53(rd) week +1.8%;
o Optimum Nutrition brand delivered revenue growth of +7.5% constant
currency;
o EBITDA margin of 16.9% (2023: 15.7%), an increase of 120bps;
· Glanbia Nutritionals ("GN") - Nutritional Solutions ("GN NS"):
o Revenue growth of +14.0%(2) with volume +3.6%, pricing +0.4%, the impact
of the 53(rd) week +2.3% and the impact of acquisitions +7.7%;
o Good volume growth across premix and protein solutions businesses;
o EBITDA margin of 19.8% (2023: 17.8%(2)), an increase of 200bps(2);
· Capital allocation:
o Recommended final dividend per share of 23.33 €cent; representing a
total 2024 dividend of 38.97 €cent; a 10% increase on prior year,
representing a payout ratio of 30.1%;
o Returned €102 million to shareholders in the year via share buybacks
(including €2 million from the launch of a €50 million share buyback
programme announced on 6 November 2024 which is ongoing); and
o Further €100 million buyback authorisation approved by the Board for
2025;
Strategic Updates:
· Group-wide transformation programme commenced to drive
efficiencies and support the next phase of growth, targeting annual cost
savings of at least $50 million by 2027. This programme includes:
o A new operating model with three focused divisions: Performance Nutrition
("PN"), Health & Nutrition ("H&N") and Dairy Nutrition ("DN");
o Unlocking supply chain efficiencies and accelerating digital
transformation; and
o The decision to exit the Benelux Direct-to-Consumer e-commerce business,
Body & Fit, and the weight management brand, SlimFast(3).
1. Earnings Per Share ("EPS")
2. For comparability purposes, commentary on revenue and EBITDA
margins for the Glanbia Nutritionals segment and the Group is presented on a
pro forma basis henceforth, reflecting the change in commercial arrangements
associated with the Group's US joint venture. Refer to Appendix 1 for the
reconciliation between 2023 reported and pro forma numbers. FY24 revenue and
revenue growth include the impact of the 53(rd) week.
3. The decision to exit the Body & Fit e-commerce business was
made by the Board of Directors prior to the year-end and it was classified as
held-for-sale. The decision to exit the SlimFast brand was made by the Board
of Directors subsequent to the year-end.
2025 Outlook:
· Glanbia expects to deliver adjusted EPS between 124 $cent and 130
$cent in FY 2025. This will be driven by a good performance from Health &
Nutrition ("H&N"), Dairy Nutrition and the Group's US joint venture ahead
of prior year, with Performance Nutrition ("PN") expected to deliver a decline
in performance versus prior year as a result of an unprecedented level of
input cost inflation.
Commenting today Hugh McGuire, Chief Executive Officer, said:
"On behalf of the Glanbia team, I am pleased to report that the Group
delivered a strong performance in 2024 with adjusted EPS growth of 6.8% to
140.03$c, driven by growth across our portfolio of better nutrition brands and
ingredients. Optimum Nutrition and Isopure, our protein growth brands,
delivered double digit volume growth in the year and we saw good growth across
our premix and protein solutions businesses within Nutritional Solutions.
Our strong operational and financial performance continued to generate
excellent cash flow, with 88.0% cash conversion in 2024. We increased the
dividend by 10% and returned €102 million to shareholders via our share
buyback programme, including €2 million of a €50 million buyback programme
announced in November 2024 which is ongoing and authority for an additional
€100 million of share buybacks announced today. We continue to evolve and
optimise our portfolio, which included the acquisition of Flavor Producers in
April and the decision to exit the Body & Fit business and the SlimFast
brand.
We have commenced a multi-year group-wide transformation programme to drive
efficiencies and support the next phase of growth. This includes setting up a
new operating model, delivering productivity initiatives, and further
optimising our portfolio, targeting annual cost savings of at least $50
million by 2027. These actions are designed to drive focus, unlock value and
position Glanbia for its next phase of growth.
Looking ahead to 2025, we will focus on continuing to drive performance across
our portfolio of better nutrition brands and ingredients, while navigating
short-term input cost inflation. In FY 2025, we expect adjusted EPS to be in
the range of 124 $cent and 130 $cent."
Group EBITDA
The Group has adopted EBITDA as a key performance measure from 2024. This
aligns with industry standards.
Summary financials(1)
FY24 results Pro forma
constant
$m 2024 Pro forma Reported 2023 Pro forma currency
2023 change change(2)
Wholly-owned business (pre-exceptional)
Revenue 3,839.7 3,629.8 5,425.4 5.8% 5.8%
EBITDA 551.3 493.4 493.4 11.7% 11.8%
EBITDA margin 14.4% 13.6% 9.1% +80bps +80bps
Joint Ventures
Share of profit after tax (pre-exceptional) 0.1 12.5 12.5
Profit after tax (pre-exceptional) 310.3 298.1 298.1
Adjusted EPS 140.03c 131.37c 131.37c 6.6% 6.8%
Basic EPS 63.21c 130.41c 130.41c (51.5%) (52.0%)
1. This release contains certain alternative performance measures.
Detailed explanation of the key performance indicators and non-IFRS
performance measures can be found in the glossary on pages 37 to 45.
2. Referred to as "constant currency change" or "total constant currency"
herein. To arrive at the constant currency change, the average exchange rate
for the current period is applied to the relevant pro forma result or in the
case of Glanbia Performance Nutrition segment, reported result from the same
period in the prior year. The average US dollar euro exchange rate for 2024
was $1 = €0.9246 (2023: $1 = €0.9247).
FY24 results summary
Revenue progression 2024 versus 2023
Constant Currency Movement
Volume Price Like-for-like 53(rd) week Acquisition / (Disposals) Total constant currency
Glanbia Performance Nutrition 2.9% (4.2%) (1.3%) 1.8% - 0.5%
Glanbia Nutritionals 1.7% 3.2% 4.9% 2.3% 3.7% 10.9%
Nutritional Solutions 3.6% 0.4% 4.0% 2.3% 7.7% 14.0%
US Cheese 0.1% 5.8% 5.9% 2.2% - 8.1%
Total wholly-owned businesses 2.3% (0.5%) 1.8% 2.0% 2.0% 5.8%
Revenue, EBITDA and Margin
2024 2023
$m - pre-exceptional Revenue EBITDA Margin % Pro forma EBITDA Pro forma
Revenue Margin %
Glanbia Performance Nutrition 1,806.7 305.4 16.9% 1,795.6 282.3 15.7%
Glanbia Nutritionals 2,033.0 245.9 12.1% 1,834.2 211.1 11.5%
Nutritional Solutions 1,007.7 200.0 19.8% 885.4 157.3 17.8%
US Cheese 1,025.3 45.9 4.5% 948.8 53.8 5.7%
Total wholly-owned businesses 3,839.7 551.3 14.4% 3,629.8 493.4 13.6%
2024 full year overview
Glanbia delivered a strong financial and operating performance in 2024. Group
revenue was $3,839.7 million (2023: $3,629.8 million), up 5.8% on a pro forma
and constant currency basis. Group EBITDA (before exceptional items) was
$551.3 million (2023: $493.4 million), up 11.8% constant currency (up 11.7%
reported). Group pre-exceptional profit after tax was $310.3 million (2023:
$298.1 million), up 4.1% constant currency (up 4.0% reported).
Adjusted EPS was 140.03 $cent (2023: 131.37 $cent), up 6.8% constant currency
(up 6.6% reported).
Balance sheet and financing
The Group's continued focus on cash management delivered a strong performance
with an Operating Cash Flow of $485.1 million (2023: $445.9 million), which
represents an OCF conversion of 88.0% (2023: 90.4%). At year end, the Group
had a net debt position of $436.0 million (2023: $248.7 million) with the
increase largely driven by the acquisition of Flavor Producers which closed in
the second quarter of 2024. Net debt to adjusted EBITDA was 0.81 times (2023:
0.50 times). At year end, the Group had committed debt facilities of $1.3
billion (2023: $1.3 billion) with a weighted average maturity of 3.8 years
(2023: 4.7 years).
Capital investment
Glanbia's total investment in capital expenditure (tangible and intangible
assets) was $87.1 million in 2024 (2023: $74.2 million). Strategic investment
totalled $58.4 million and included ongoing capacity enhancement, business
integrations, and IT investments to drive further efficiencies in operations.
Total capital expenditure for 2025 is expected to be $80 million to $90
million. Glanbia's ability to generate cash and its available debt facilities
ensure the Group has considerable capacity to finance future investments.
Dividend per share
The Board is recommending a final dividend of 23.33 €cent per share which
brings the total dividend for the year to 38.97 €cent per share, a 10%
increase on prior year. This total dividend represents a payout ratio of 30.1%
of 2024 adjusted EPS, which is within the Company's target payout ratio of 25%
to 35%. The final dividend will be paid on 2 May 2025 to shareholders on the
share register on 21 March 2025. Irish withholding tax will be deducted at the
standard rate where appropriate. The Company's primary dividend payment
currency remains euro.
Share buyback
During the year, Glanbia purchased and cancelled 6.2 million ordinary shares,
representing 2.4% of the total issued ordinary shares at the beginning of
2024, at a total cost of approximately €102 million (2023: €100 million).
The Board approved a €50 million share buyback programme that was announced
on 6 November 2024 and formally commenced on 16 December 2024. Today, the
Group is announcing that the Board has approved a further €100 million share
buyback authority in 2025 as part of its capital allocation policy.
Strategic updates
As announced on 6 November 2024, Glanbia has commenced a group-wide
transformation programme to drive efficiencies across the Group's new
operating model and support the next phase of growth through three focused
divisions: Performance Nutrition, Health & Nutrition and Dairy Nutrition.
The programme is a three-year initiative expected to generate annual cost
savings of at least $50m by 2027. These savings will be allocated across a mix
of reinvestment into the business and profitability improvement.
The programme is focused on four key areas:
1) Operating model optimisation: The new operating model is designed to
further simplify the business, increase focus on high-growth end-use markets,
and provide greater insight into Glanbia's value drivers and growth
opportunities.
· Health & Nutrition comprises the premix solutions and
flavours platforms and will focus on high-growth priority end-use markets.
· Dairy Nutrition combines the US Cheese and Nutritional Solutions
protein portfolios and will operate as a standalone business with a dedicated
leadership team from 1 July, with the goal of optimising profits and returns
as a leading dairy business.
2) Unlocking supply chain efficiencies: From a supply chain perspective
the Group has identified further efficiency opportunities to be unlocked by
consolidating the Performance Nutrition and Health & Nutrition supply
chain organisations, particularly across manufacturing, procurement and
quality as part of the new operating model.
3) Accelerating digital transformation: As part of Glanbia's digital
transformation journey, the Group identified opportunities to enhance
productivity across the Group, which will centralise and outsource the
delivery of support functions. This will support improved business processes
and accelerate growth through commercial excellence.
4) Ongoing portfolio evaluation: As part of its portfolio review and to
ensure the Group can focus on high-growth opportunities, the Group has
evaluated the role of its Benelux Direct-to-Consumer e-commerce business, Body
& Fit, and its weight management brand SlimFast, making the decision to
exit both businesses. The Group continues to evaluate its broader portfolio
with a focus on delivering sustainable and profitable growth.
The Group believes the choices made under the programme will provide a solid
foundation for managing any short-term challenges while supporting the Group's
long-term growth ambition. The Group will hold a Capital Markets Day in the
second half of 2025, presenting its strategic progress and associated
financial ambition.
The Group remains confident in delivering the financial ambition outlined at
the Capital Markets event in November 2022, which was as follows:
2023-2025 financial ambition Ambition 2024 result
Group metrics*
Adjusted EPS growth (on a constant currency basis) 5-10% 6.8%
OCF conversion % 80%+ 88.0%
Return on Capital Employed ("ROCE") 10-13% 12.4%
* All Group metrics are average annual metrics for the three years 2023-2025
and include M&A activity.
Board changes
The following Board changes have taken place at the Company since the
beginning of 2024.
On 10 May 2024, the Group announced that Tirlán Co-operative Society Limited
(the "Society") had nominated Gerard O'Brien and Thomas Phelan to replace
Patrick Murphy and Brendan Hayes respectively on the Board of the Group with
effect from 1 June 2024. Patrick Murphy retired on 1 May 2024 and Brendan
Hayes retired on 31 May 2024. Paul Duffy and Kimberly Underhill were appointed
to the Nomination and Governance Committee on 1 May 2024.
The Glanbia Board is comprised of 13 members: the Chairman, two Executive
Directors, ten Non-Executive Directors including three representatives from
the Society.
The Company Chairman, Donard Gaynor, has informed the Board of his intention
to retire from the Glanbia Board at the conclusion of the Company's annual
general meeting in 2026. The Senior Independent Director will lead a process
to identify a successor for the Company Chairman.
Today, Glanbia announces that Mr Senan Murphy will join the Company's Board as
a Non-Executive Director with his appointment becoming effective at the
conclusion of the Company's annual general meeting on 30 April 2025. On
appointment, Mr Murphy will also join the Audit and Sustainability Board
committees. Mr Murphy brings to the Glanbia Board significant experience in
finance and international business, having had a range of senior management
roles at a number of public companies. Mr Murphy is currently a Non-Executive
Director of Kingspan plc. Mr Murphy's full biography and disclosures as
required by the Listing Rules are provided in a separate announcement
published today.
Sustainability
Glanbia is focused on delivering against its stated commitments and
integrating sustainability within its strategic decisions. The Group remains
on track to meet its commitment to reduce Scope 1 & 2 carbon emissions by
50% by 2030 from a 2018 base, delivering a 7.5% reduction of Scope 1 & 2
carbon emissions in 2024 versus the previous year. The Group set an
accelerated ambition for Scope 3 decarbonisation(1), targeting a 30% reduction
in FLAG emissions associated with dairy sourcing and a 25% reduction in
non-FLAG emissions by 2030.
1. Aligning with the latest scientific consensus and the Forest, Land
and Agriculture Guidance ("FLAG") from the Science Based Target Initiative.
2025 Outlook
In 2024, Glanbia delivered a solid performance with revenue growth across the
Group, good margin expansion, strong cash generation and continued progress on
the Group's strategic initiatives.
Based on current market conditions and the existing uncertainty in the
geopolitical environment, Glanbia expects FY 2025 adjusted EPS to be in the
range of 124 $cent to 130 $cent. The key components of this are expected to be
as follows:
o PN like-for-like revenue(1) broadly in line with 2024 (excluding the
impact of SlimFast and Body & Fit) and EBITDA margin in the range of 13% -
14%;
o H&N like-for-like revenue growth(1) of mid-single digit and EBITDA
margin in the range of 17% - 18%;
o Profit growth across DN and the Group's US joint venture, combined; and
o Operating cash flow conversion rate of 80%+.
Glanbia operates in a growing sector and has a strong portfolio of better
nutrition brands and ingredients which resonate strongly with consumers
seeking health and wellness. We continue to remain focused on long-term
sustainable growth for shareholders.
1. Like-for-like revenue and revenue growth exclude the impact of the
53(rd) week in 2024.
Inside Information
This announcement contains inside information. The person responsible for
arranging the release of this announcement on behalf of Glanbia plc is Liam
Hennigan, Group Secretary and Head of Investor Relations. The time and date of
this announcement is, at 7 am GMT, 26 February 2025.
2024 operations review
(Commentary on percentage movements is on a constant currency basis
throughout)
Glanbia Performance Nutrition
$m - pre-exceptional 2024 2023 Reported Constant
change currency
change
Revenue 1,806.7 1,795.6 +0.6% +0.5%
EBITDA 305.4 282.3 +8.2% +8.3%
EBITDA margin 16.9% 15.7% +120bps
· Revenue increase of 0.5% with an increase of 2.9% in volume, a
decrease of 4.2% in pricing and an increase from the impact of the 53(rd) week
of 1.8%.
· Optimum Nutrition, the number one global brand in the sports
nutrition sector, delivered revenue growth of 7.5% which was driven by volumes
increasing 10.4%, pricing decreasing 4.9% and an increase of 2.0% from the
impact of the 53(rd) week.
· EBITDA margin of 16.9%, an increase of 120bps versus 2023.
GPN revenue increased by 0.5% in 2024. This was driven by volume increases of
2.9%, price decrease of 4.2% and the impact of the 53(rd) week of 1.8%. The
volume increase was largely driven by the protein growth brands, Optimum
Nutrition and Isopure, both of which delivered double digit volume growth.
Optimum Nutrition, which represents 66% of GPN revenue, continues to
strengthen its brand to drive global distribution and velocities. Pricing was
negative largely as a result of promotional activity and some tactical price
reductions during the year as a result of an increased competitive
environment.
GPN EBITDA increased by 8.3% versus prior year to $305.4 million and EBITDA
margin increased by 120 basis points to 16.9%. This was driven by lower input
costs in the first half of the year, continued focus on revenue growth
management initiatives, operating efficiencies and margin optimisation,
somewhat offset by rising input costs in the second half of the year.
Americas
GPN Americas revenue decreased by 0.5%, with strong growth in the Optimum
Nutrition and Isopure brands offset by declines in other portfolio brands,
primarily driven by SlimFast.
Optimum Nutrition continues to strengthen its consumer position and delivered
US consumption growth of 0.4%1, building on a strong comparative period. This
was driven by growth in the online and FDM channels offset by declines in the
specialty channel and competitive dynamics in the club channel in the second
half of the year. The healthy lifestyle portfolio saw US consumption growth of
3.3%1 across the think!, Isopure and Amazing Grass brands.
A non-cash impairment charge of $91.4 million has been recognised during the
year in respect of the SlimFast brand in the Americas reflecting continuing
challenges in the diet category impacting performance and a decision has been
made to exit this brand.
International
GPN International, which represents 36% of GPN revenue, grew revenue by 2.3%.
Growth across the region was driven by strong volume growth in the Optimum
Nutrition brand across key priority markets, including solid growth in Asia.
As part of its portfolio review, Body & Fit, the Benelux
Direct-to-Consumer e-commerce business has been determined to be non-core and
a decision has been made to exit this business. A fair value adjustment of
$46.0 million has been recognised in 2024.
Glanbia Nutritionals
2024 2023
$m - pre-exceptional Revenue EBITDA Margin % Pro forma EBITDA Pro forma
Revenue Margin %
Nutritional Solutions 1,007.7 200.0 19.8% 885.4 157.3 17.8%
US Cheese 1,025.3 45.9 4.5% 948.8 53.8 5.7%
Total Glanbia Nutritionals 2,033.0 245.9 12.1% 1,834.2 211.1 11.5%
1 Consumption growth is US measured channels and includes Online, FDMC (Food,
Drug, Mass, Club) and Specialty channels. Data compiled from published
external sources and Glanbia estimates for the 52 week period to 28 December
2024.
Nutritional Solutions
Pro forma Pro forma constant
change currency
change
$m - pre-exceptional 2024 Pro forma
2023
Revenue 1,007.7 885.4 13.8% 14.0%
EBITDA 200.0 157.3 27.1% 27.2%
EBITDA margin 19.8% 17.8% +200bps
· Revenue increase of 14.0% with volume growth of 3.6%, pricing
growth of 0.4%, an increase of 2.3% from the impact of the 53(rd) week and an
increase of 7.7% from acquisitions.
· EBITDA margin of 19.8%, an increase of 200 basis points versus
2023.
GN NS revenue increased by 14.0% in 2024. This was driven by 3.6% increase in
volume, 0.4% increase in price, 2.3% increase as a result of the impact of the
53(rd) week and 7.7% increase driven by the impact of acquisitions. The volume
increase was driven by a good performance in the premix solutions and proteins
businesses. The price increase was driven by strong dairy market pricing,
somewhat offset by negative premix pricing.
The acquisition of Flavor Producers, which was completed in April 2024,
significantly expands GN NS's flavours offering in the attractive and growing
natural and organic flavours market and is performing well.
GN NS EBITDA was $200.0 million, a 27.2% increase versus prior year. EBITDA
margin increased by 200 basis points to 19.8% primarily as a result of
stronger dairy pricing within the proteins business.
US Cheese
$m - pre-exceptional 2024 Pro forma Pro forma Pro forma constant
2023 change currency
change
Revenue 1,025.3 948.8 8.1% 8.1%
EBITDA 45.9 53.8 (14.7%) (14.7%)
EBITDA margin 4.5% 5.7% (120bps)
US Cheese revenue increased by 8.1% in 2024. This was driven by a 0.1%
increase in volume, a 5.8% increase in price and a 2.2% increase as a result
of the impact of the 53(rd) week. Price increases were primarily as a result
of dairy market pricing.
US Cheese EBITDA decreased by 14.7% to $45.9 million due to market dynamics
and lapping procurement benefits in the prior year.
Joint Ventures (Glanbia share)
$m - pre-exceptional 2024 2023 Change
Share of joint ventures' profit after tax 0.1 12.5 (12.4)
The Group's share of joint ventures' profit after tax pre‐exceptional items
decreased by $12.4 million to $0.1 million, largely driven by higher input
costs as a result of unfavourable market pricing dynamics.
New Segmentation
From 2025 onwards, Glanbia Nutritionals will be split into two new segments -
Health & Nutrition and Dairy Nutrition. The Health & Nutrition segment
will primarily incorporate the premix solutions and flavours platforms with
the Dairy Nutrition segment focusing on cheese and dairy ingredients and will
comprise the portfolios of protein solutions (currently in NS) and US Cheese
as well as being the commercial partner for the Group's joint venture
MWC-Southwest Holdings LLC. Pro forma financials for the new segments have
been separately released on the Group's website and are available at the
following link: Restated and Pro Forma Financial Statements | Glanbia
(https://www.glanbia.com/investors/restated-pro-forma-financial-statements) .
Appendix 1
Pro forma Revenue and EBITDA Margin
2024 2023 2023 2023
$m Reported Reported Pro forma adjustment Pro forma
Revenue
Nutritional Solutions 1,007.7 1,008.5 (123.1) 885.4
US Cheese 1,025.3 2,621.3 (1,672.5) 948.8
Glanbia Nutritionals 2,033.0 3,629.8 (1,795.6) 1,834.2
Glanbia Performance Nutrition 1,806.7 1,795.6 - 1,795.6
Group Revenue 3,839.7 5,425.4 (1,795.6) 3,629.8
EBITDA (pre-exceptional)
Nutritional Solutions 200.0 157.3 - 157.3
US Cheese 45.9 53.8 - 53.8
Glanbia Nutritionals 245.9 211.1 - 211.1
Glanbia Performance Nutrition 305.4 282.3 - 282.3
Group EBITDA 551.3 493.4 - 493.4
EBITDA margin (pre-exceptional)
Nutritional Solutions 19.8% 15.6% 220bps 17.8%
US Cheese 4.5% 2.1% 360bps 5.7%
Glanbia Nutritionals 12.1% 5.8% 570bps 11.5%
Glanbia Performance Nutrition 16.9% 15.7% - 15.7%
Group EBITDA margin 14.4% 9.1% 450bps 13.6%
Full Year 2024 Finance Review
Full year 2024 results summary (pre-exceptional) Pro forma Reported Pro forma Constant currency
$m 2024 2023 2023 change change
Revenue 3,839.7 3,629.8 5,425.4 5.8% 5.8%
EBITDA 551.3 493.4 493.4 11.7% 11.8%
EBITDA margin 14.4% 13.6% 9.1% +80bps +80bps
- Amortisation of intangible assets (82.1) (79.6) (79.6)
- Depreciation of PPE & ROU Assets (73.1) (69.4) (69.4)
- Net finance costs (26.8) (12.3) (12.3)
- Share of results of joint ventures 0.1 12.5 12.5
- Income taxes (59.1) (46.5) (46.5)
Profit for the year 310.3 298.1 298.1
Basic EPS - continuing operations 63.21c 130.41c 130.41c (51.5%) (52.0%)
Adjusted EPS - continuing operations 140.03c 131.37c 131.37c 6.6% 6.8%
Revenue
Revenue increased in 2024 by 5.8% versus prior year pro forma on a constant
currency basis to $3.8 billion, driven by volume increases of 2.3%, pricing
declines of 0.5%, impact of 53rd week 2.0% and M&A related increase of
2.0%. Detailed analysis of revenue is set out within the operations review.
EBITDA (pre-exceptional)
EBITDA before exceptional items increased by 11.8% constant currency (11.7%
reported) to $551.3 million (2023:
$493.4 million) with strong EBITDA growth in both GPN and GN. EBITDA margin in
FY24 was 14.4%, compared to 13.6% in 2023 pro forma, representing an increase
of 80 basis points. Detailed analysis of EBITDA is set out within the
operations review.
Net finance costs (pre-exceptional)
Net finance costs (pre-exceptional) increased by $14.5 million to $26.8
million (2023: $12.3 million). The increase was primarily driven by an
increase in the Group's average net financial indebtedness during 2024 due to
the acquisition of the Flavor Producers business, as well as the full year
impact of higher interest charges on $169 million of bank borrowings which
were re-fixed at higher interest rates in late 2023. The Group's average
interest rate was 4.6% (2023: 2.0%). Glanbia operates a policy of fixing a
significant proportion of its interest rate exposure.
Share of results of joint ventures (pre-exceptional)
The Group's share of joint ventures' profit after tax (pre-exceptional)
decreased by $12.4 million to $0.1 million, largely driven by higher input
costs as a result of unfavourable market pricing dynamics.
Income taxes
The 2024 pre-exceptional tax charge increased by $12.6 million to $59.1
million (2023: $46.5 million). This represents an effective tax rate,
excluding joint venture, of 16.0% (2023: 14.0%). The tax credit related to
exceptional items is $15.8 million (2023: credit of $1.8 million) and relates
primarily to the impairment of the SlimFast Americas cash generating unit. The
Group currently expects that its effective tax rate for 2025 will be in the
range of 14% to 16%.
Exceptional items
$m - continuing operations 2024 2023
Group-wide transformation programme (note 1) 18.0 6.0
Acquisition and integration costs (note 2) 5.7 -
Pension related costs (note 3) 0.3 2.5
Net gain on disposal/exit of operations (note 4) - (56.3)
Impairment of non-core assets held for sale (note 5) 46.0 -
Impairment of intangible assets (note 6) 91.4 -
Total 161.4 (47.8)
Exceptional tax credit (15.8) (1.8)
Total exceptional charge/(gain) - continuing operations 145.6 (49.6)
$m - discontinued operations 2024 2023
Exceptional charge after tax from discontinued operations (note 7) - 3.2
Total exceptional charge/(gain) in the year 145.6 (46.4)
Details of the exceptional items are as follows:
1. Group-wide transformation programme: During 2023 the Group commenced
a number of initiatives to realign support functions and optimise structures
to more efficiently support business operations and growth. On 6 November
2024, a group-wide transformation programme was announced to drive
efficiencies across the new operating model and support the next phase of
growth. This multi-year programme is focused on driving efficiencies across
the Group's operating model and supply chains while leveraging the Group's
digital transformation capabilities.
During 2024, the Group incurred costs of $18.0 million (2023: $6.0 million)
primarily related to advisory fees and people related costs.
2. Acquisition and integration costs: These costs relate to the
transaction and integration costs associated with the Flavor Producers
business.
3. Pension related costs: These costs relate to the restructure of
certain legacy defined benefit pension schemes in the UK. Final wind up is
anticipated in 2025.
4. Net gain on disposal/exit of operations: The prior year net gain
related primarily to disposals of the UK and EU Leprino Foods (formerly known
as Glanbia Cheese) joint ventures and a small US bottling facility (Aseptic
Solutions) which were previously designated as held for sale.
5. Impairment of non-core assets held for sale: The charge relates to
fair value adjustments to reduce the carrying value of assets held for sale to
recoverable value. The assets relate to the Benelux Direct-To-Consumer ("DTC")
online branded business (Body & Fit Sportsnutrition B.V.). Following the
completion of a portfolio review, these assets and liabilities were determined
to be non-core and a decision was made to divest of them, resulting in the
designation as held for sale at year end. A process of disposal has commenced
and a sale is expected to be executed in FY 2025.
6. Impairment of intangible assets: In accordance with IAS 36 Impairment
of Assets, the Group is required to assess goodwill and other intangible
assets for impairment. Accordingly, impairment reviews are performed annually,
or more frequently if there is an indication that the carrying amount may not
be recoverable. A non-cash impairment charge of $91.4 million has been
recognised during the year in respect of the SlimFast Americas cash generating
unit reflecting continuing challenges in the weight management category
impacting the brand's performance. Subsequent to year end the Directors
approved the commencement of a sales process for the SlimFast brand.
7. Exceptional charge after tax from discontinued operations: Prior year
charge related to the crystallisation of certain contingent costs associated
with the Group's divestment of Tirlán Limited.
Profit after tax
Profit after tax from continuing operations comprises pre-exceptional profit
of $310.3 million (2023: $298.1 million). The $12.2 million increase in
pre-exceptional profit after tax from continuing operations is driven by the
continued growth in profitability of wholly-owned businesses net of reduced
profitability of the joint venture, and an increase in net finance costs.
Exceptional charges after tax of $145.6 million in the year predominantly
related to non-cash impairments in the GPN business. In the prior year,
exceptional gains of $46.4 million mainly related to profit on disposal of UK
and EU Leprino Foods joint ventures.
Profit after tax and exceptionals for the year was $164.7 million compared to
$344.5 million in 2023, comprising continuing operations of $164.7 million
(2023: $347.7 million).
Earnings Per Share (EPS)
$ 2024 Reported Constant currency
2023 change change
Basic EPS 63.21c 129.21c (51.1%) (51.5%)
- continuing operations 63.21c 130.41c (51.5%) (52.0%)
- discontinued operations - (1.20c) 100% 100%
Adjusted EPS - continuing operations 140.03c 131.37c +6.6% +6.8%
Basic EPS from continuing operations decreased by 51.5% reported versus prior
year, driven by exceptional charges predominantly related to non-cash
impairments in the GPN business.
Adjusted EPS is a Key Performance Indicator ("KPI") of the Group, a key metric
guided to the market and a key element of Executive Director and senior
management remuneration. Adjusted EPS increased by 6.8% constant currency
(6.6% reported) in the year, all from continuing operations.
Foreign exchange
Group results are impacted by year-on-year fluctuations in exchange rates
versus the US dollar. Key non-US dollar currencies for the Group over the year
were euro and Pound sterling, for which average and year-end rates were as
follows:
Average Year-end
1 US dollar = 2024 2023 2024 2023
euro 0.9246 0.9247 0.9710 0.9050
Pound sterling 0.7827 0.8043 0.8058 0.7865
Cash flow and capital allocation
Cash flow generation and conversion
$m 2024 2023
EBITDA (pre-exceptional) 551.3 493.4
Movement in working capital (pre-exceptional) (37.5) (25.0)
Business-sustaining capital expenditure (28.7) (22.5)
Operating cash flow 485.1 445.9
Net interest and tax paid (65.7) (51.8)
Payment of lease liabilities (23.7) (19.9)
Dividends from related parties 5.0 32.0
Other inflows/(outflows) 1.8 (16.4)
Free cash flow 402.5 389.8
Strategic capital expenditure (58.4) (51.7)
Dividends paid to Company shareholders (104.4) (97.2)
Loans/investment in related parties - 67.8
Purchase of own shares under share buyback (111.4) (108.7)
Exceptional cash paid (22.7) (13.5)
Acquisition/disposals (297.0) 59.8
Net cash flow (191.4) 246.3
Exchange translation 2.4 (5.5)
Cash acquired on acquisition 1.7 0.5
Net debt movement (187.3) 241.3
Opening net debt (248.7) (490.0)
Closing net debt (436.0) (248.7)
Operating Cash Flow ("OCF") is a Group KPI guided to the market and is an
element of Executive Director and senior management remuneration. The Group's
OCF was $485.1 million in the year (2023: $445.9 million) and represents a
strong cash conversion on EBITDA of 88.0% (2023: 90.4%). The OCF conversion
target for the year was 80%.
The increase in OCF since prior year relates primarily to higher EBITDA of
$57.9 million across the business, partially offset by a modest increase in
working capital outflow of $12.5 million and an increase in
business-sustaining capex of $6.2 million.
The Group's Free Cash Flow ("FCF") amounted to $402.5 million versus $389.8
million in the prior year. The increase was primarily due to an increase in
OCF which was partially offset by higher interest payments and lower dividends
received from joint venture.
Capital allocated for the benefit of shareholders includes regular dividend
payments of $104.4 million (2023: $97.2 million). Acquisition spend relates
primarily to the acquisition of Flavor Producers for an initial consideration
of $299.7 million.
Group financing
Financing measures 2024 2023
Net debt ($m) 436.0 248.7
Net debt: adjusted EBITDA 0.81 times 0.50 times
Adjusted EBIT: adjusted net finance cost 16.7 times 38.1 times
The Group's financial position continues to be strong. At year end 2024, net
debt was $436.0 million (2023: $248.7 million), an increase of $187.3 million
from prior year and the Group had committed debt facilities of $1.3 billion
(2023: $1.3 billion) with a weighted average maturity of 3.8 years (2023: 4.7
years). Glanbia's ability to generate cash, as well as its available debt
facilities ensures the Group has considerable capacity to finance future
investments. Net debt to adjusted EBITDA was 0.81 times (2023: 0.50 times) and
interest cover was 16.7 times (2023: 38.1 times), both metrics remaining well
within financing covenants.
Capital expenditure
Cash outflow relating to capital expenditure for the year amounted to $87.1
million (2023: $74.2 million), including
$28.7 million of business-sustaining capital expenditure and $58.4 million of
strategic capital expenditure. Key strategic projects completed in 2024
include ongoing capacity enhancement, business integrations and IT investments
to drive further efficiencies in operations.
Dividends
The Board is recommending a final dividend of 23.33 €cent per share which
brings the total dividend for the year to 38.97 €cent per share, a 10%
increase on the prior year. This total dividend represents a payout ratio of
30.1% of 2024 adjusted EPS which is in line with the Board's target dividend
payout ratio of 25% to 35%. The final dividend will be paid on 2 May 2025 to
shareholders on the share register on 21 March 2025.
Share buyback
Share buyback activity continued during 2024, returning €102 million to
shareholders in the year. With confidence in the strong cash generation
abilities of the organisation, the Board has further authorised an additional
€100 million in share buybacks for 2025 as an effective mechanism to return
value to shareholders.
ROCE
2024 2023 Change
Return on Capital Employed - continuing operations 12.4% 12.2% +20bps
ROCE increased in 2024 by 20 basis points to 12.4%. This increase was
primarily due to the continued growth in profitability of the wholly-owned
business, as well as operational efficiencies to improve margin and drive
sustainable long-term returns. Acquisitions remain a key part of the growth
strategy of the Group with investments assessed against a target benchmark of
12% return after tax by the end of year three.
Sustainability
Glanbia as an organisation is focused on delivering against our stated
commitments and integrating sustainability within our strategic decisions.
This includes enhancing our reporting capabilities and related Sustainability
Reporting Framework to meet the EU Corporate Sustainability Reporting
Directive requirements, coming into effect for Glanbia in financial year 2025.
The Group continued to progress our sustainability agenda including the
effective management of the evolving regulatory environment globally.
During 2024, the Group agreed Sustainability Linked Loan ("SLL") status for
all its bilateral Revolving Credit Facilities amounting to $729 million. The
loan agreements now incorporate annual targets in relation to four separate
environmental metrics, namely, Emissions, Water usage, Packaging and Waste
throughout the remaining life of the facilities.
Investor relations
Glanbia has a proactive approach to shareholder engagement with the Annual
General Meeting ("AGM") being a key event annually. In 2024, an in person AGM
was held on 1 May at the Newpark Hotel in Kilkenny, Ireland. All details
relating to the AGM were published on the Company's website: www.glanbia.com/
agm.
In 2024, the Group engaged with shareholders and investors through a series of
strategic activities. These included a shareholder consultation on resolution
6 (remuneration policy), which was put to the AGM in May 2024. It also
included several investor roadshows and media briefings following the Group's
full year and half year results, providing opportunities for direct engagement
and communication. Additionally, the Group held an investor day in the United
States, which included a tour of Glanbia Performance Nutrition's production
plant in Aurora, Illinois, and provided an update on key brands within the
Glanbia Performance Nutrition portfolio.
In addition to full year and half year results, Glanbia publishes interim
management statements after the first and third quarters to provide investors
with a regular update on performance and expectations throughout the year. All
releases, reports and presentations are made available immediately on
publication on the Group's website: www.glanbia.com.
Audit Tender
In compliance with the regulations mandating public interest entities tender
their audits every ten years, the Board commenced an audit tender process in
2024 to select the Group's next statutory auditor effective FY 2026. The Audit
Committee recommended EY as the Group's statutory auditor to the Board, which
they have approved. Subject to approval at the AGM, EY will be appointed as
our new statutory auditor commencing from 4 January 2026.
Looking ahead
As announced on 6 November 2024, Glanbia has commenced a group wide
transformation programme to drive efficiencies across the new operating model
and support the next phase of growth through three focused divisions:
Performance Nutrition, Health & Nutrition and Dairy Nutrition.
Health & Nutrition comprises the premix solutions and flavours platforms
and will focus on high-growth priority end-use markets. Dairy Nutrition
combines the US Cheese and Nutritional Solutions protein portfolios and will
operate as a standalone business with a dedicated leadership team from 1 July,
with the goal of optimising profits and returns as a leading dairy business.
The new operating model is designed to further simplify the business, increase
focus on high-growth end-use markets, and provide greater insight into
Glanbia's value drivers and growth opportunities.
The programme is a three-year initiative expected to generate annual cost
savings of at least $50 million by 2027. These savings will be allocated
across a mix of reinvestment into the business and profitability improvement.
Principal Risks and Uncertainties
The Board of Glanbia plc has the ultimate responsibility for the Group's
systems of risk management and internal control. The Directors of Glanbia have
carried out a robust assessment of the Group's principal risks, including
those that may threaten Glanbia's business model, future performance, solvency
or liquidity. The risk categorisation recognises the external risks associated
with the operating environment, which are typically considered and managed
through strategic processes, and the mainly internal risks associated with
people, processes and systems which are managed through Glanbia's internal
controls. Emerging risks with the potential to impact longer term success are
also considered to ensure appropriate plans are in place to respond to them
over time.
The Group's principal risks and uncertainties which are summarised in the risk
profile table below remain relevant and unchanged from the risks reported in
last year's Annual Report. While no new principal risks were identified and no
changes were observed in risk trends, the Group continues to navigate a
dynamic and rapidly changing risk landscape. The Group has effectively managed
the evolving risk environment in 2024 and continues to develop mitigation
measures to address these challenges in the year ahead. There may be other
risks and uncertainties that are not yet considered material or not yet known
to Glanbia and this list will change if these risks assume greater importance
in the future. Likewise, some of the current risks may drop off the key risks
schedule as management actions are implemented or changes in the operating
environment occur.
Strategic/External Financial Technological Operational/Regulatory
Risk where trend is stable • Customer concentration • Taxation changes • Digital transformation • Health and safety
• Product safety and compliance
• Acquisition/integration
• Supply chain
• Talent management
Risk where trend is • Geopolitical • Cyber security and data protection
increasing • Economic and Industry
• Market disruption
• Climate change
The key risk factors and uncertainties with the potential to impact on the
Group's financial performance in 2025 include:
· Geopolitical risk - the geopolitical situation remains fragile. The
ongoing war in Ukraine, regional conflicts in the Middle East, tensions in the
South China Sea and Taiwan and increased economic competition between the US
and China continue to create uncertainties and market volatility. The Board is
closely monitoring tensions in key trading regions, where any potential
conflict, economic sanctions or trade rulings could impact Glanbia's growth
objectives.
· Economic and industry risk - while the macroeconomic outlook
stabilised as recession risks declined, vulnerabilities persist due to
geopolitical tensions, the increased risk of tariff wars, geoeconomic
fragmentation and slow global growth leaving many countries vulnerable to
economic shocks. The Group will continue to monitor these and any other
adverse changes in economic conditions, which may increase the cost of living
and disrupt demand through a slowdown in consumer spending.
· Market disruption risk - although inflationary pressures are
easing, they remain persistent and vulnerable to negative impacts from
geopolitical tensions, particularly with regard to the introduction of tariffs
between the US and some of its key trading partners and unpredictable climate
conditions, which may drive prices higher. Given the potential for a
combination of external factors to influence this position, continued action
is being taken by the Group to mitigate remaining inflationary pressures,
competitor challenges and key ingredient price volatility.
· Supply chain risk - geopolitical tensions and the increased risk of
tariff wars could potentially impact the importation of key raw materials
and/or negatively impact on the Group's international sales channels. The
Group is holding appropriate safety stocks for core raw materials, however a
prolonged impact to supply chains, heightened inflation, occurrence of extreme
weather events and natural disasters, or a geo-political event in a key
trading region would have negative consequences from both a supply and pricing
perspective.
· Customer concentration risk - while strategically the Group aims to
build strong customer relationships with major customers, material disruption
with, or loss of, one or more of these customers, or a significant
deterioration in commercial terms, could materially impact profitability. This
risk can also expose the Group to credit exposure and other balance sheet
risks. The Board is focused on utilising available mitigation to limit such
exposures where possible.
The Group actively manages these and all other risks through its risk
management and internal control processes.
Cautionary statement
Glanbia plc has made forward-looking statements in this document that are
based on management's beliefs and assumptions and on information currently
available to management. Forward-looking statements include, but are not
limited to, information concerning the Group's possible or assumed future
results of operations, business strategies, financing plans, competitive
position, potential growth opportunities, potential operating performance
improvements, the effects of competition and the effects of future legislation
or regulations. Forward-looking statements include all statements that are not
historical facts and can be identified by the use of forward-looking
terminology such as the words 'believe', 'develop', 'expect', 'ensure',
'arrive', 'achieve', 'anticipate', 'maintain', 'grow', 'aim', 'deliver',
'sustain', 'should' or the negative of these terms or similar expressions.
Forward-looking statements involve risks, uncertainties and assumptions.
Actual results may differ materially from those expressed in these
forward-looking statements. You should not place undue reliance on any
forward-looking statements. These forward-looking statements are made as of
the date of this document. The Group expressly disclaims any obligation to
update these forward-looking statements other than as required by law. The
forward-looking statements in this release do not constitute reports or
statements published in compliance with any of Regulations 4 to 9 and 26 of
the Transparency (Directive 2004/109/EC) Regulations 2007 or any equivalent
provisions of the Disclosure and Transparency Rules of the FCA.
On behalf of the Board
Hugh McGuire Mark Garvey
Chief Executive Officer Chief Financial Officer
26 February 2025
Annual General Meeting (AGM)
Glanbia plc's AGM will be held on Wednesday 30 April 2025, in the Killashee
House Hotel, Naas, Co. Kildare, Ireland.
Results webcast and dial-in details:
There will be an analysts' conference call and webcast presentation to
accompany this results announcement at 8.30 a.m. (GMT) today. Please access
the webcast from the Glanbia website at
https://www.glanbia.com/investors/financial-calendar
(https://www.glanbia.com/investors/financial-calendar) , where the
presentation can also be viewed or downloaded.
A replay of the call will be available for 30 days from this afternoon. Please
see the link below to the Investor Relations section of the Glanbia plc
website for details:
https://www.glanbia.com/investors/results-centre
(https://www.glanbia.com/investors/results-centre)
For further information contact
Glanbia plc +353 56 777 2200
Hugh McGuire, Chief Executive Officer
Mark Garvey, Chief Financial Officer
Liam Hennigan, Group Secretary & Head of Investor Relations +353 86 046 8375
Martha Kavanagh, Head of Corporate Communications +353 87 646 2006
Group income statement
for the financial year ended 4 January 2025
2024 2023
Notes Pre- Exceptional Total Pre- Exceptional Total
exceptional $m $m exceptional $m $m
$m (note 3) $m (note 3)
Continuing operations 3,839.7 - 3,839.7 5,425.4 - 5,425.4
Revenue*
Cost of goods sold* (2,674.3) - (2,674.3) (4,301.3) - (4,301.3)
Gross Profit 1,165.4 - 1,165.4 1,124.1 - 1,124.1
Selling and distribution expenses (449.9) - (449.9) (474.6) (0.4) (475.0)
Administration expenses (238.3) (26.9) (265.2) (228.1) 48.2 (179.9)
Net impairment gain on financial assets 1.0 - 1.0 2.6 - 2.6
Operating profit before intangible asset amortisation and impairment 478.2 (26.9) 451.3 424.0 47.8 471.8
Intangible asset amortisation and impairment (82.1) (134.5) (216.6) (79.6) - (79.6)
Operating profit 396.1 (161.4) 234.7 344.4 47.8 392.2
4 5.4 - 5.4 9.8 - 9.8
Finance income
Finance costs 4 (32.2) - (32.2) (22.1) - (22.1)
Share of results of joint ventures accounted for using the equity method 0.1 - 0.1 12.5 - 12.5
Profit before taxation 369.4 (161.4) 208.0 344.6 47.8 392.4
Income taxes 5 (59.1) 15.8 (43.3) (46.5) 1.8 (44.7)
Profit from continuing operations 310.3 (145.6) 164.7 298.1 49.6 347.7
12 - - - (3.2) (3.2)
Discontinued operations -
Loss after tax from discontinued operations
Profit for the year 310.3 (145.6) 164.7 298.1 46.4 344.5
Attributable to:
Equity holders of the Company 10 164.7 344.4
Non-controlling interests - 0.1
164.7 344.5
Earnings Per Share from continuing operations attributable to the equity
holders of the Company
Basic Earnings Per Share (cent) 6 63.21 130.41
Diluted Earnings Per Share (cent) 6 62.45 128.67
Earnings Per Share attributable to the equity holders of the Company
Basic Earnings Per Share (cent) 6 63.21 129.21
Diluted Earnings Per Share (cent) 6 62.45 127.50
* Current period revenue and cost of goods sold are not comparable with those of
the prior period. Refer to note 1 for details.
Group statement of comprehensive income
for the financial year ended 4 January 2025
Notes 2024 2023
$m $m
Profit for the year 164.7 344.5
Other comprehensive income
Items that will not be reclassified subsequently to the Group income 4.1 1.5
statement:
Remeasurements on defined benefit plans, net of deferred tax
Revaluation of equity investments at FVOCI, net of deferred tax 9 - 0.2
Share of other comprehensive income of joint ventures accounted for using the 10 - 0.1
equity method,
net of deferred tax
9 (5.5) 4.4
Items that may be reclassified subsequently to the Group income statement:
Currency translation differences
Currency translation difference arising on net investment hedge 9 (7.0) 3.5
Movement in cash flow hedges, net of deferred tax 1.5 (2.9)
Share of other comprehensive income of joint ventures accounted for using the
equity method,
net of deferred tax
(0.1) (2.5)
Other comprehensive income for the year, net of tax (7.0) 4.3
Total comprehensive income for the year 157.7 348.8
Attributable to:
Equity holders of the Company 157.7 348.7
Non-controlling interests - 0.1
Total comprehensive income for the year 157.7 348.8
Group balance sheet
as at 4 January 2025
Notes 4 January
2025 30 December
$m 2023
$m
ASSETS
Non-current assets
Property, plant and equipment 518.6 515.1
Right-of-use assets 87.0 88.3
Intangible assets 1,608.0 1,537.3
Interests in joint ventures 157.5 159.3
Other financial assets 0.9 2.6
Deferred tax assets 3.4 5.2
Retirement benefit assets 12.0 8.2
2,387.4 2,316.0
Current assets 634.8 550.2
Inventories
Trade and other receivables 391.5 501.8
Current tax receivable 17.0 17.4
Derivative financial instruments 1.4 -
Cash and cash equivalents (excluding bank overdrafts) 8 417.0 413.7
1,461.7 1,483.1
Assets held for sale 12 25.4 -
1,487.1 1,483.1
Total assets 3,874.5 3,799.1
EQUITY
Issued capital and reserves attributable to equity holders of the Company
Share capital and share premium 129.3 129.7
Other reserves 9 168.3 172.1
Retained earnings 10 1,775.2 1,830.8
Total equity 2,072.8 2,132.6
LIABILITIES
Non-current liabilities
Borrowings 8 552.2 553.5
Lease liabilities 85.1 89.3
Retirement benefit obligations 1.0 1.0
Deferred tax liabilities 104.6 137.9
Provisions 4.3 4.3
747.2 786.0
Current liabilities
Trade and other payables 611.7 659.1
Borrowings 8 300.8 108.9
Lease liabilities 20.8 20.1
Current tax liabilities 101.9 67.3
Derivative financial instruments - 2.0
Provisions 10.7 23.1
1,045.9 880.5
Liabilities held for sale 12 8.6 -
1,054.5 880.5
Total liabilities 1,801.7 1,666.5
Total equity and liabilities 3,874.5 3,799.1
Group statement of changes in equity
for the financial year ended 4 January 2025
Attributable to equity holders of the Company
2024 Share capital and share premium Other Retained Total Non- Total
$m reserves earnings $m Controlling interests $m
$m
$m
$m
(note 9)
(note 10)
Balance at 31 December 2023 129.7 172.1 1,830.8 2,132.6 - 2,132.6
- - 164.7 164.7 - 164.7
Profit for the year
Other comprehensive income - (11.1) 4.1 (7.0) - (7.0)
Total comprehensive income for the year - (11.1) 168.8 157.7 - 157.7
- - (104.4) (104.4) - (104.4)
Dividends
Purchase of own shares - (129.8) - (129.8) - (129.8)
Cancellation of own shares (0.4) 111.4 (111.0) - - -
Share-based payment expense - 18.2 - 18.2 - 18.2
Transfer on exercise, vesting or expiry of share-based payments - 7.5 (7.5) - - -
Deferred tax on share-based payments - - (1.5) (1.5) - (1.5)
Balance at 4 January 2025 129.3 168.3 1,775.2 2,072.8 - 2,072.8
2023
Balance at 1 January 2023 130.2 167.9 1,686.2 1,984.3 8.4 1,992.7
- - 344.4 344.4 0.1 344.5
Profit for the year
Other comprehensive income - 2.7 1.6 4.3 - 4.3
Total comprehensive income for the year - 2.7 346.0 348.7 0.1 348.8
Dividends - - (97.2) (97.2) - (97.2)
Purchase of own shares - (148.1) - (148.1) - (148.1)
Cancellation of own shares (0.5) 109.2 (108.7) - - -
Share-based payment expense - 24.5 - 24.5 - 24.5
Transfer on exercise, vesting or expiry of share-based payments
- 5.8 (5.8) - - -
Deferred tax on share-based payments - - 2.1 2.1 - 2.1
Acquisition of NCI - - 8.2 8.2 (8.5) (0.3)
Transfer to Group income statement - 10.1 - 10.1 - 10.1
Balance at 30 December 2023 129.7 172.1 1,830.8 2,132.6 - 2,132.6
Group statement of cash flows
for the financial year ended 4 January 2025
Notes 2024
$m 2023
$m
Cash flows from operating activities 11 531.6 491.4
Cash generated from operating activities before exceptional items
Cash outflow related to exceptional items (22.7) (11.8)
Interest received 6.1 10.7
Interest paid (including interest paid on lease liabilities) (31.3) (22.0)
Tax paid (40.5) (40.5)
Net cash inflow from operating activities 443.2 427.8
(298.0)
Cash flows from investing activities (71.4)
Payment for acquisition of subsidiary, net of cash acquired
Purchase of property, plant and equipment (54.3) (42.0)
Purchase of intangible assets (32.8) (32.2)
Proceeds from sale of property, plant and equipment 2.7 -
Dividends received from related parties 5.0 32.0
Proceeds from disposal /redemption of FVOCI financial assets 2.4 -
Proceeds from disposal of Leprino Foods (exceptional) - 123.4
Proceeds on repayment of loans advanced to Leprino Foods EU Limited 12 - 71.3
Loans advanced to Leprino Foods EU Limited - (3.5)
Proceeds from disposal of assets and liabilities held for sale (exceptional) - 8.6
Net cash outflow from discontinued operations - (1.7)
Net cash (outflow)/inflow from investing activities (375.0) 84.5
9 (129.8)
Cash flows from financing activities (148.1)
Purchase of own shares
Drawdown of borrowings 672.8 140.8
Repayment of borrowings (673.3) (271.6)
Payment of lease liabilities (23.7) (19.9)
Payment for acquisition of NCI - (0.3)
Dividends paid to Company shareholders 7 (104.4) (97.2)
Net cash outflow from financing activities (258.4) (396.3)
(190.2)
Net (decrease)/increase in cash and cash equivalents 116.0
Cash and cash equivalents at the beginning of the year 304.8 192.5
Effects of exchange rate changes on cash and cash equivalents 1.6 (3.7)
Cash and cash equivalents at the end of the year 8 116.2 304.8
Notes to the financial statements
for the financial year ended 4 January 2025
1. Accounting policies
The financial information set out in this document does not constitute full
statutory financial statements but has been derived from the Group financial
statements for the year ended 4 January 2025 (referred to as the 2024
Financial Statements). The 2024 Financial Statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and their
interpretations approved by the International Accounting Standards Board
('IASB') as adopted by the European Union ('EU') and those parts of the
Companies Act 2014, applicable to companies reporting under IFRS. The 2024
Financial Statements have been audited and have received an unqualified audit
report. Amounts are stated in US dollar millions ($m) unless otherwise stated.
These financial statements are prepared for the 53‐week period ended 4
January 2025. Comparatives are for the 52‐week period ended 30 December
2023. The balance sheets for 2024 and 2023 have been drawn up as at 4 January
2025 and 30 December 2023 respectively.
The financial statements have been prepared under the historical cost
convention as modified by use of fair values for certain other financial
assets, contingent consideration, put option liability, and derivative
financial instruments.
All notes to the financial statements include amounts for continuing
operations, unless indicated otherwise.
The Group's accounting policies which will be included in the 2024 Financial
Statements are consistent with those as set out in the 2023 financial
statements other than the change in US joint venture commercial arrangements
and change in Group income statement format as detailed below.
The 2024 Financial Statements were approved and authorised for issue by the
Board of Directors on 25 February 2025 and signed on its behalf by D Gaynor, H
McGuire, and M Garvey.
Change in US joint venture commercial arrangements
Following an announcement on 16 August 2023, the Group amended the commercial
arrangements between Glanbia Nutritionals and its US joint venture effective 1
January 2024. Under the previous commercial terms, the Group was considered to
be a principal under IFRS 15 and consequently recorded the gross value of
revenues and corresponding cost of sales on joint venture products sold. Under
the new commercial terms, the Group is considered to be an agent under IFRS 15
and recognises commissions earned on the sale of joint venture products. The
change in commercial terms has impacted the recognition and presentation of
revenues and cost of sales from 2024 onwards only. Consequently, revenues,
costs of sales, and corresponding transactional amounts with its joint venture
in the current year are not comparable with those of the prior year.
Change in Group income statement format
Certain line items on the Group income statement that were previously
presented in the Operating profit note (cost of goods sold, gross profit,
selling and distribution expenses, administration expenses, net impairment
gain on financial assets) have now been presented directly on the Group income
statement. Refer to the Group income statement for the amounts involved. There
is no impact on reported profit or net assets as a result of this change. This
change supports the Group's intention to simplify reporting to be more in line
with peers.
Going concern
After making appropriate enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for a period of at least 12 months from the date of approval of the
financial statements. The Group therefore considers it appropriate to adopt
the going concern basis in preparing its financial statements.
Adoption of new and amended standards
There were no new or amended standards that were effective for the Group
during the financial year.
New and amended standards that are not yet effective
The Group has not applied new amendments to existing standards that have been
issued but are not yet effective. The Group intends to adopt these amended
standards, if applicable, when they become effective. The Group is currently
evaluating the impact of the amendments and IFRS 18 on future periods.
Classification of Liabilities as Current or Non-current - Amendments to IAS 1
(EU effective date: on or after 1 January 2024)
The amendments clarify that liabilities are classified as either current or
non-current, depending on the rights that exist at the end of the reporting
period. Classification is unaffected by the expectations of the entity or
events after the reporting date (e.g. the receipt of a waiver or a breach of
covenant). The amendments also clarify what IAS 1 means when it refers to the
'settlement' of a liability.
Non-current Liabilities with Covenants - Amendments to IAS 1 (EU effective
date: on or after 1 January 2024)
The amendments improve the information an entity provides when its right to
defer settlement of a liability for at least twelve months is subject to
compliance with covenants. The amendments also respond to stakeholders'
concerns about the classification of such a liability as current or
non-current.
IFRS 18 - Presentation and Disclosure in Financial Statements (IASB effective
date: on or after 1 January 2027)
IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1
unchanged and complementing them with new requirements.
IFRS 18 introduces new requirements to:
• present specified categories and defined subtotals in the statement of
profit or loss.
• provide disclosures on management-defined performance measures (MPMs) in
the notes to the financial statements.
• improve aggregation and disaggregation.
Other changes to IFRS have been issued but are not yet effective for the
Group. However, they are either not expected to have a material impact on the
Group or they are not currently relevant for the Group.
2. Segment information
In accordance with IFRS 8 'Operating Segments', the Group has identified
Glanbia Performance Nutrition and Glanbia Nutritionals as reportable segments
as at 4 January 2025. Glanbia Performance Nutrition manufactures and sells
sports nutrition and lifestyle nutrition products through a variety of
channels including specialty, online, Food, Drug, Mass, Club (FDMC), and
distributor in a variety of formats, including powders, Ready-to-Eat (bars and
snacking foods) and Ready-to-Drink beverages. Glanbia Nutritionals
manufactures and sells cheese, dairy and non-dairy nutritional and functional
ingredients, and vitamin and mineral premixes targeting the increased market
focus on health and nutrition.
All other segments and unallocated include both the results of joint ventures
who manufacture and sell cheese and dairy ingredients and unallocated
corporate costs. These investees did not meet the quantitative thresholds for
reportable segments in 2024 or 2023. Amounts stated for joint ventures
represents the Group's share.
These segments align with the Group's internal financial reporting system and
the way in which the CODM assesses performance and allocates the Group's
resources. Each segment is reviewed in its totality by the CODM. The CODM
assesses the trading performance of operating segments based on a measure of
earnings before interest, tax, depreciation, amortisation and exceptional
items. Given that net finance costs and income tax are managed on a
centralised basis, these items are not allocated between operating segments
for the purposes of the information presented to the CODM and are accordingly
omitted from the detailed segmental analysis below.
2024 2023
Glanbia Performance Nutrition Glanbia Nutritionals* $m All other segments Total Glanbia Performance Nutrition Glanbia Nutritionals All other segments Total
$m and unallocated $m $m $m and unallocated $m
$m $m
Segment results (pre-exceptional)
Total gross segment revenue 1,807.3 2,098.5 - 3,905.8 1,795.7 3,717.4 - 5,513.1
Inter-segment revenue (0.6) (65.5) - (66.1) (0.1) (87.6) - (87.7)
Revenue 1,806.7 2,033.0 - 3,839.7 1,795.6 3,629.8 - 5,425.4
Earnings before interest, tax, depreciation, amortisation and exceptional 305.4 245.9 - 551.3 282.3 211.1 - 493.4
items (EBITDA)**
Share of results of joint ventures accounted for using the equity method - - 0.1 0.1
- - 12.5 12.5
Segment assets and liabilities
Segment assets 1,700.9 1,525.1 648.5 3,874.5 1,859.6 1,285.1 654.4 3,799.1
Segment liabilities 378.8 355.5 1,067.4 1,801.7 394.7 403.5 868.3 1,666.5
Other segment information
Depreciation of PP&E and ROU assets*** 25.6 47.5 - 73.1 26.9 42.5 - 69.4
Amortisation of intangible assets 50.8 31.3 - 82.1 56.8 22.8 - 79.6
Exceptional charge/(gain) 139.8 1.1 20.5 161.4 3.4 2.2 (53.4) (47.8)
Capital expenditure - additions 24.4 75.5 6.4 106.3 16.1 48.9 12.6 77.6
Capital expenditure - business combinations - 285.3 - 285.3 - 41.8 - 41.8
* Current period revenue is not comparable with that of the prior period. Refer
to note 1 for details.
** The Group moved to presenting EBITDA in lieu of EBITA in the current period to
continue its ambition to simplify reporting to be more in line with its peers.
*** Includes depreciation of property, plant and equipment of $52.2 million (2023:
$49.7 million), reversal of an impairment of property, plant and equipment of
$1.0 million (2023: nil) and depreciation of right-of-use assets of $21.9
million (2023: $19.7 million).
Revenue of $433.8 million is derived from an external customer within the
Glanbia Nutritionals segment. Within the same segment in the prior period,
revenues from two external customers were $966.2 million and $771.3 million
respectively.
Segment earnings before interest, tax, depreciation, amortisation and
exceptional items are reconciled to reported profit before taxation and profit
after taxation as follows:
Notes 2024 2023
$m $m
Earnings before interest, tax, depreciation, amortisation and exceptional 551.3 493.4
items (EBITDA)
Finance income 4 5.4 9.8
Finance costs 4 (32.2) (22.1)
Share of results of joint ventures accounted for using the equity method 0.1 12.5
Exceptional items 3 (161.4) 47.8
Intangible asset amortisation (82.1) (79.6)
Depreciation of property, plant and equipment (52.2) (49.7)
Reversal of impairment of property, plant and equipment 1.0 -
Depreciation of right-of-use assets (21.9) (19.7)
Profit before taxation 208.0 392.4
Income taxes 5 (43.3) (44.7)
Loss after tax from discontinued operations - (3.2)
Profit for the year 164.7 344.5
Geographical information
Revenue from external customers, and non-current assets, other than financial
instruments, deferred tax assets, and retirement benefit assets attributable
to the country of domicile and all foreign countries of operation for which
revenue/non-current assets exceed 10% of total Group revenue/non-current
assets are set out below.
Revenue from external customers in the table below and in the disaggregation
of revenue by primary geographical markets table below is allocated to
geographical areas based on the place of delivery or collection of the
products sold as agreed with customers as opposed to the end use market where
the product may be consumed.
2024 2023
Revenue Non-current Revenue Non-current
$m assets $m assets
$m $m
Ireland (country of domicile) 45.7 1,064.4 18.0 821.4
US* 2,718.1 1,180.8 4,296.7 1,281.5
Other
- North America (excluding US) 115.0 5.6 106.6 6.3
- Europe (excluding Ireland) 471.3 108.9 473.0 178.7
- Asia Pacific 367.9 11.3 379.3 12.0
- LATAM 56.7 0.1 95.0 0.1
- Rest of World 65.0 - 56.8 -
3,839.7 2,371.1 5,425.4 2,300.0
Disaggregation of revenue
Revenue is disaggregated based on the Group's internal reporting structures,
the primary geographical markets in which the Group operates, the timing of
revenue recognition, and channel mix as set out in the following tables.
2024 2023
Glanbia Glanbia Total Glanbia Glanbia Total
Performance Nutrition Nutritionals* $m Performance Nutrition Nutritionals $m
$m $m $m $m
Internal reporting structures
Nutritional Solutions - 1,007.7 1,007.7 - 1,008.5 1,008.5
US Cheese - 1,025.3 1,025.3 - 2,621.3 2,621.3
GPN Americas 1,161.0 - 1,161.0 1,166.7 - 1,166.7
GPN International 645.7 - 645.7 628.9 - 628.9
1,806.7 2,033.0 3,839.7 1,795.6 3,629.8 5,425.4
1,162.6 1,670.5 2,833.1
Primary geographical markets 1,185.5 3,217.8 4,403.3
North America
Europe 351.8 165.2 517.0 361.1 129.9 491.0
Asia Pacific 226.7 141.2 367.9 196.6 182.7 379.3
LATAM 21.7 35.0 56.7 13.6 81.4 95.0
Rest of World 43.9 21.1 65.0 38.8 18.0 56.8
1,806.7 2,033.0 3,839.7 1,795.6 3,629.8 5,425.4
Timing of revenue recognition
Products transferred at point in time 1,806.7 2,033.0 3,839.7 1,795.6 3,629.8 5,425.4
Products transferred over time - - - - - -
1,806.7 2,033.0 3,839.7 1,795.6 3,629.8 5,425.4
* Current period revenue is not comparable with that of the prior
period. Refer to note 1 for details.
Channel mix for Glanbia Performance Nutrition 2024 2023
$m $m
Distributor 363.8 369.3
Food, Drug, Mass, Club (FDMC) 635.5 630.3
Online 599.5 576.3
Specialty 207.9 219.7
1,806.7 1,795.6
The disaggregation of revenue by channel mix is most relevant for Glanbia
Performance Nutrition.
3. Exceptional items
The nature of the total exceptional items is as follows:
Notes 2024 2023
$m $m
Group-wide transformation programme (a) 18.0 6.0
Acquisition and integration costs (b) 5.7 -
Pension related costs (c) 0.3 2.5
Net gain on disposal/exit of operations (d) - (56.3)
Impairment of non-core assets held for sale (e) 46.0 -
Impairment of intangible assets (f) 91.4 -
Total 161.4 (47.8)
Exceptional tax credit 5 (15.8) (1.8)
Total exceptional charge/(gain) from continuing operations 145.6 (49.6)
Exceptional charge after tax from discontinued operations (g) - 3.2
Total exceptional charge/(gain) after tax for the year 11 145.6 (46.4)
Details of the exceptional items are as follows:
(a) Group-wide transformation programme: During 2023 the Group commenced a
number of initiatives to realign support functions and optimise structures to
more efficiently support business operations and growth. On 6 November 2024, a
group-wide transformation programme was announced to drive efficiencies across
the new operating model and support the next phase of growth. This multi-year
programme is focused on driving efficiencies across the Group's operating
model and supply chains while leveraging the Group's digital transformation
capabilities.
During 2024, the Group incurred costs of $18.0 million (2023: $6.0m) primarily
related to advisory fees and people related costs.
(b) Acquisition and integration costs: These costs relate to the
transaction and integration costs associated with the Flavor Producers
business.
(c) Pension related costs: These costs relate to the restructure of
certain legacy defined benefit pension schemes in the UK. Final wind up is
anticipated in 2025.
(d) Net gain on disposal/exit of operations: The prior year net gain
related primarily to disposals of the UK and EU Leprino Foods joint ventures
and a small US bottling facility (Aseptic Solutions) which were previously
designated as held for sale.
(e) Impairment of non-core assets held for sale: The charge relates to
fair value adjustments to reduce the carrying value of assets held for sale to
recoverable value. The assets relate to the Benelux Direct-To-Consumer (DTC)
online branded business (Body & Fit Sportsnutrition B.V.). Following the
completion of a portfolio review, these assets and liabilities were determined
to be non-core and a decision was made to divest of them, resulting in the
designation as held for sale at year end. A process of disposal has commenced
and a sale is expected to be executed in FY 2025.
(f) Impairment of intangible assets: In accordance with IAS 36
Impairment of Assets, the Group is required to assess goodwill and other
intangible assets for impairment. Accordingly, impairment reviews are
performed annually, or more frequently if there is an indication that the
carrying amount may not be recoverable. A non-cash impairment charge of $91.4
million has been recognised during the year in respect of the SlimFast
Americas cash generating unit reflecting continuing challenges in the weight
management category impacting the brand's performance. Subsequent to year end
the Directors approved the commencement of a sales process for the SlimFast
brand.
(g) Exceptional charge after tax from discontinued operations: Prior year
charge related to the crystallisation of certain contingent costs associated
with the Groups divestment of Tirlán Limited.
4. Finance income and costs
2024 2023
$m $m
Finance income
Interest income on cash and deposits 5.1 4.6
Interest income on swaps 0.3 4.0
Interest income on loans to joint ventures - 1.0
Remeasurements of contingent consideration - 0.2
Total finance income 5.4 9.8
Finance costs
Bank borrowing costs (16.0) (6.4)
Finance cost of private placement debt (10.4) (10.1)
Facility fees (2.8) (2.9)
Interest expense on lease liabilities (3.0) (2.7)
Total finance costs (32.2) (22.1)
(26.8) (12.3)
Net finance costs
5. Income taxes
2024 2023
$m $m
Current tax
Irish current tax charge 22.1 5.3
Adjustments in respect of prior years 0.1 (2.3)
Irish current tax for the year 22.2 3.0
50.5 47.0
Foreign current tax charge
Adjustments in respect of prior years 0.2 (5.8)
Foreign current tax for the year 50.7 41.2
Total current tax 72.9 44.2
Deferred tax
Deferred tax - current year (28.3) (5.2)
Adjustments in respect of prior years (1.3) 5.7
Total deferred tax (29.6) 0.5
43.3
Tax charge 44.7
The tax credit on exceptional items included in the above amounts is as
follows:
Notes 2024 2023
$m $m
Current tax credit on exceptional items (1.0) (1.8)
Deferred tax credit on exceptional items (14.8) -
Total tax credit on exceptional items for the year 3 (15.8) (1.8)
The tax credit on exceptional items has been disclosed separately above as it
relates to costs and income which have been presented as exceptional.
The tax on the Group's profit before tax differs from the theoretical amount
that would arise applying the corporation tax rate in Ireland, as follows:
2024 2023
$m $m
Profit before tax 208.0 392.4
Income tax calculated at Irish rate of 12.5% (2023: 12.5%) 26.0 49.1
Earnings at non-standard Irish tax rate 1.1 0.9
Difference due to overseas tax rates (capital and trading) 1.4 (4.8)
Adjustment to tax charge in respect of previous periods (1.0) (2.3)
Tax on share of results of joint ventures accounted for using the equity - (1.6)
method included in profit before tax
Difference due to permanent differences within exceptional items - 10.2 (7.2)
non-deductible costs/(non-taxable income)
Other reconciling items 5.6 10.6
Total tax charge 43.3 44.7
Factors that may affect future tax charges and other disclosure requirements
The total tax charge in future periods will be affected by any changes to
applicable tax rates in force in jurisdictions in which the Group operates and
other relevant changes in tax legislation. The total tax charge of the Group
may also be influenced by the effects of corporate development activity and
the resolution of uncertain tax positions where the outcome is different from
the amounts recorded.
The Group adopted the amendments to IAS 12 in the prior year. The IASB amended
the scope of IAS 12 to clarify that the Standard applies to income taxes
arising from tax law enacted or substantively enacted to implement the Global
Anti-Base Erosion ('GloBE') rules published by the OECD (the 'Pillar Two'
model rules) including tax law that implements qualified domestic minimum
top-up taxes described in those rules.
The amendments introduced a temporary exception to the accounting requirements
for deferred taxes in IAS 12, so that an entity would neither recognise nor
disclose information about deferred tax assets and liabilities related to
Pillar Two income taxes. The Group is required to disclose that it had applied
the exception and to disclose separately its current tax expense/(income)
related to Pillar Two income taxes.
The Group has applied the temporary exception contained in the amendments
issued by the IASB from the accounting requirements for deferred taxes in IAS
12. Accordingly, the Group neither recognises nor discloses information about
deferred tax assets and liabilities related to Pillar Two income taxes.
On 18 December 2023, the government of Ireland enacted Pillar Two income taxes
legislation in Ireland, effective 1 January 2024, under which Glanbia plc, the
ultimate parent company of the Group, will be required to pay to the Irish tax
authorities top-up tax on the profits of its subsidiaries with an effective
tax rate of less than 15 per cent for each jurisdiction in which the Group
operates, or it can elect to rely on safe harbour criteria to exclude
qualifying subsidiaries.
No current tax income or expense related to Pillar Two income taxes was
recognised in the tax charge for the year ended 4 January 2025 (2023:nil).
6. Earnings Per Share
Basic
Basic Earnings Per Share is calculated by dividing profit after tax
attributable to the equity holders of the Company by the weighted average
number of ordinary shares in issue during the year, excluding ordinary shares
purchased by the Group and held as own shares (note 9). The weighted average
number of ordinary shares in issue used in the calculation of Basic Earnings
Per Share is 260,554,311 (2023: 266,548,048).
Diluted
Diluted Earnings Per Share is calculated by adjusting the weighted average
number of ordinary shares in issue to assume conversion of all potential
dilutive ordinary shares. Share awards are the Company's only potential
dilutive ordinary shares. The share awards, which are performance based, are
treated as contingently issuable shares, because their issue is contingent
upon satisfaction of specified performance conditions, as well as the passage
of time. Contingently issuable shares are included in the calculation of
Diluted Earnings Per Share to the extent that conditions governing
exercisability have been satisfied, as if the end of the reporting period were
the end of the vesting period.
2024 2023
Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total
Profit after tax attributable to equity holders of the Company ($m) 164.7 164.7 347.6 (3.2) 344.4
-
Basic Earnings Per Share (cent) 63.21 - 63.21 130.41 (1.20) 129.21
Diluted Earnings Per Share (cent) 62.45 - 62.45 128.67 (1.17) 127.50
2024 2023
Weighted average number of ordinary shares in issue 260,554,311 266,548,048
Shares deemed to be issued for no consideration in respect of share awards 3,181,275 3,594,033
Weighted average number of shares used in the calculation of Diluted Earnings 263,735,586 270,142,081
Per Share
7. Dividends
The dividends paid and recommended on ordinary share capital are as follows:
Notes 2024 2023
$m $m
Equity dividends to shareholders
Final - paid EUR 21.21c per ordinary share (2023: EUR 19.28c) 60.2 57.6
Interim - paid EUR 15.64c per ordinary share (2023: EUR 14.22c) 45.2 39.9
Total 105.4 97.5
Reconciliation to Group statement of cash flows and Group statement of changes
in equity
Dividends to shareholders 105.4 97.5
Waived dividends in relation to own shares (0.6) (0.3)
Dividend Withholding Tax refund (0.4) -
Total dividends paid to equity holders of the Company 10 104.4 97.2
Equity dividends recommended
Final 2024 - proposed EUR 23.33c per ordinary share (2023: EUR 21.21c) 62.2 62.1
The amount of dividends recommended is based on the number of issued shares at
year end. The actual amount will be based on the number of issued shares on
the record date (note 14).
8. Net debt
2024 2023
$m $m
Non-current
Bank borrowings 177.2 178.5
Private placement debt 375.0 375.0
552.2 553.5
Current 300.8 108.9
Bank overdrafts
853.0 662.4
Total borrowings
Net debt is a non-IFRS measure which we provide to investors as we believe
they find it useful. It is also used to calculate leverage under the Group's
financing arrangements, as defined within covenants. Refer to the Financing
measures section in the Glossary for more details. Net debt comprises the
following:
2024 2023
$m $m
Private placement debt 375.0 375.0
Bank borrowings 169.0 169.0
Not subject to interest rate changes* 544.0 544.0
8.2
Bank borrowings 9.5
Cash and cash equivalents net of bank overdrafts (116.2) (304.8)
Subject to interest rate changes* (108.0) (295.3)
436.0
Net debt 248.7
* Taking into account contractual repricing dates at the reporting date.
2024 2023
$m $m
Cash at bank and in hand 386.8 404.5
Short term bank deposits 30.2 9.2
Cash and cash equivalents in the Group balance sheet 417.0 413.7
Bank overdrafts used for cash management purposes (300.8) (108.9)
Cash and cash equivalents in the Group statement of cash flows 116.2 304.8
9. Other reserves
Capital and Currency reserve Hedging reserve Own Share-based payment reserve FVOCI reserve Total
merger reserve $m $m shares $m $m $m
$m reserve
$m
Balance at 31 December 2023 136.7 30.4 4.5 (37.5) 37.8 0.2 172.1
- (5.5) - - - - (5.5)
Currency translation differences
Net investment hedge - (7.0) - - - - (7.0)
Revaluation - gross - - 0.8 - - - 0.8
Reclassification to profit or loss - gross - - 0.8 - - - 0.8
Deferred tax - - (0.2) - - - (0.2)
Net change in OCI - (12.5) 1.4 - - - (11.1)
Purchase of own shares - - - (129.8) - - (129.8)
Cancellation of own shares 0.4 - - 111.0 - - 111.4
Share-based payment expense - - - - 18.2 - 18.2
Transfer on exercise, vesting or expiry - - - 33.1 (25.6) - 7.5
of share-based payments
Balance at 4 January 2025 137.1 17.9 5.9 (23.2) 30.4 0.2 168.3
136.2 12.6 9.7 (22.0) 31.4 - 167.9
Balance at 1 January 2023
- 4.4 - - - - 4.4
Currency translation differences
Net investment hedge - 3.5 - - - - 3.5
Revaluation - gross - - (6.5) - - 0.3 (6.2)
Reclassification to profit or loss - gross - - (0.3) - - - (0.3)
Deferred tax - - 1.4 - - (0.1) 1.3
Net change in OCI - 7.9 (5.4) - - 0.2 2.7
Purchase of own shares - - - (148.1) - - (148.1)
Cancellation of own shares 0.5 - - 108.7 - - 109.2
Share-based payment expense - - - - 24.5 - 24.5
Transfer on exercise, vesting or expiry - - - 23.9 (18.1) - 5.8
of share-based payments
Transfer to Group income statement* - 9.9 0.2 - - - 10.1
Balance at 30 December 2023 136.7 30.4 4.5 (37.5) 37.8 0.2 172.1
* On disposal of foreign operations.
10. Retained earnings
Notes 2024 2023
$m $m
At the beginning of the year 1,830.8 1,686.2
Profit for the year attributable to equity holders of the Company 164.7 344.4
Other comprehensive income
- Remeasurements on defined benefit plans 4.6 1.7
- Deferred tax on remeasurements on defined benefit plans (0.5) (0.2)
- Share of remeasurements on defined benefit plans from joint ventures, net of - 0.1
deferred tax
4.1 1.6
Dividends 7 (104.4) (97.2)
Cancellation of own shares 9 (111.0) (108.7)
Transfer on exercise, vesting or expiry of share-based payments 9 (7.5) (5.8)
Deferred tax on share-based payments (1.5) 2.1
Derecognition of NCI - 8.2
At the end of the year 1,775.2 1,830.8
11. Cash generated from operating activities
Notes 2024 2023
$m $m
Profit for the year 164.7 344.5
Exceptional items 3 145.6 (46.4)
Income taxes 59.1 46.5
Profit before taxation 369.4 344.6
Share of results of joint ventures accounted for using the equity method (0.1) (12.5)
Finance costs 4 32.2 22.1
Finance income 4 (5.4) (9.8)
Amortisation of intangible assets 82.1 79.6
Depreciation of property, plant and equipment 52.2 49.7
Depreciation of right-of-use assets 21.9 19.7
Reversal of impairment of property, plant and equipment (1.0) -
Share-based payment expense 18.2 24.5
Difference between pension charge and cash contributions 0.1 (2.7)
Net write down of inventories 27.7 18.4
Non-cash movement in/on:
- provisions (2.1) 7.4
- allowance for impairment of receivables (0.3) (3.8)
- cross currency swaps (1.5) 0.7
- other financial assets (0.7) -
(Profit)/loss on disposal of property, plant and equipment (0.3) 1.2
Loss on disposal of intangible assets 0.5 -
Operating cash flows before movement in working capital 592.9 539.1
(Increase)/decrease in inventories (121.5) 191.2
Decrease/(increase) in trade and other receivables 116.0 (91.1)
Decrease in trade and other payables (44.3) (144.4)
Decrease in provisions (11.5) (3.4)
Cash generated from operating activities before exceptional items 531.6 491.4
12. Assets and liabilities held for sale, and discontinued operations
Assets and liabilities held for sale
2024
$m
Inventories 9.3
Intangible assets 6.6
Trade and other receivables 5.0
Property, plant and equipment 3.1
Right-of-use assets 1.4
Assets held for sale 25.4
Trade and other payables (6.3)
Lease liabilities (2.3)
Liabilities held for sale (8.6)
The assets and liabilities held for sale at 4 January 2025 relate to the
Benelux Direct-to-Consumer (DTC) online branded business (Body & Fit
Sportsnutrition B.V.). Following the completion of a portfolio review, these
assets and liabilities which are part of the Glanbia Performance Nutrition
segment were determined to be non-core and a decision was made to divest of
them, resulting in the designation as held for sale at year end. A process of
disposal has commenced and a sale is expected to be executed in FY 2025.
An impairment of $46.0 million (note 3) was recognised as an exceptional
charge in the income statement immediately prior to the classification of the
assets and liabilities as held for sale.
The prior year net exceptional gain on disposal/exit of operations in note 3
relates to the gain on disposal of Leprino Foods and Aseptic Solutions which
were both treated as held for sale prior to the disposal. The sale of Leprino
Foods was completed on 28 April 2023 for an initial cash consideration of
$125.2 million (€114.0 million) and repayment of $71.3 million (€64.9
million) of shareholder loans. The gain of $60.3 million on disposal of
Leprino Foods is based on the $125.2 million received less working capital
adjustments of $1.8 million, carrying amount of the asset held for sale at 28
April 2023 of $52.2 million, costs of $2.8 million, and associated cumulative
debit amounts recognised in other comprehensive income of $8.1 million that
were reclassified to the Group income statement. The divestment of Aseptic
Solutions was completed on 6 March 2023.The gain on disposal of $0.4 million
is based on $11.2 million consideration, less the carrying amount of the net
assets held for sale of $9.3 million on the date of the transaction and costs
associated with the transaction of $1.5 million.
The above divestments are not regarded as discontinued operations as they were
not considered to be either separate major lines of business
or geographical areas of operations.
Discontinued operations
The loss from discontinued operations in the prior year relates to the
disposal of Tirlán Limited on 1 April 2022. The charge of $3.2 million
(note 3) relates to the crystallisation of certain contingent costs associated
with the divestment transaction following the conclusion of negotiations on
separation of the common infrastructure of both organisations.
13. Business combinations
On 26 April 2024, Glanbia acquired 100% of the voting equity interests of
Aroma Holding Company, LLC which owns Flavor Producers, LLC ("Flavor
Producers"), via cash and contingent consideration as noted below. Flavor
Producers is a leading flavour platform in the US, providing flavours and
extracts to the food and beverage industries, with a focus on organic and
natural ingredients. The acquisition is consistent with Glanbia's strategy of
acquiring complementary businesses to grow its Better Nutrition platforms.
Flavor Producers significantly expands Nutritional Solutions' flavours
offering, bringing new capabilities in the attractive and growing natural and
organic flavours market which are aligned with long-term consumer trends. The
goodwill relates to the acquired workforce, the expectation that the business
will give rise to synergies across the Glanbia Nutritionals segment, will
generate future sales beyond the existing customer base, as well as the
opportunity to expand the business into new markets, where there are no
existing customers, and further complements the recipes and know-how across
the Glanbia Nutritionals segment. Of the goodwill recognised in respect of the
acquisition, the Group expects the full amount to be deductible for tax
purposes.
Details of the net assets acquired and goodwill arising from the acquisition
are as follows:
Total
$m
Cash paid 299.7
Contingent consideration -
Total purchase consideration 299.7
Less: fair value of net assets acquired (156.0)
Goodwill 143.7
The fair value of assets and liabilities arising from the acquisition are as
follows:
Property, plant and equipment 11.2
Right-of-use assets 2.3
Intangible assets - customer relationships 17.0
Intangible assets - recipes and know-how 102.0
Intangible assets - brands 8.0
Inventories 8.4
Trade and other receivables 14.5
Cash and cash equivalents 1.7
Deferred tax asset 7.8
Trade and other payables (8.2)
Lease liabilities (2.3)
Deferred tax liability (6.4)
Fair value of net assets acquired 156.0
The contingent consideration arrangement requires the Group to pay the sellers
an earnout in 2025 if a pre-defined earnings threshold is exceeded within a
defined period post acquisition. Under the acquisition agreement, the
undiscounted amount of future payments for which the Group may be liable
ranges from nil to $55.0 million.
The fair value of the contingent consideration was estimated by calculating
the present value of the future expected payments and was nil at period end.
The main significant unobservable input in the calculation is the forecast
EBITDA of Flavor Producers over the relevant period. A 10% increase/decrease
in the forecast EBITDA would not have a material effect on the fair value of
the contingent consideration.
The fair value of Flavor Producers trade and other receivables at the
acquisition date amounted to $14.5 million. The gross contractual amount for
trade receivables due is $11.6 million, of which $0.5 million is expected to
be uncollectible. Acquisition-related costs of $5.4 million incurred primarily
on professional fees are included in administrative expenses (exceptional).
Flavor Producers contributed $55.2 million of revenue and made a profit of
$3.2 million before taxation and exceptional items for the period from the
date of acquisition to the reporting date. If the acquisition of Flavor
Producers had occurred on 31 December 2023, pro forma Group revenue and Group
profit before taxation and exceptional items for the year ended 4 January 2025
would have been $3,868.5 million and $374.7 million respectively.
The Group acquired PanTheryx, Inc. in 2023 for which the fair values of the
net identifiable assets were determined provisionally. Following the
finalisation of the fair value of assets and liabilities during the
measurement period, goodwill increased by $1.1 million.
14. Events after the reporting period
See note 7 for the final dividend, recommended by the Directors. Subject to
shareholder approval, this dividend will be paid on 2 May 2025 to shareholders
on the register of members on 21 March 2025, the record date.
Subsequent to year end the Directors approved the commencement of a sales
process for the SlimFast brand.
15. Statutory financial statements
The financial information in this preliminary announcement does not constitute
the full statutory financial statements of Glanbia plc (the 'Company'), a copy
of which is required to be annexed to the Company's annual return filed with
the Companies Registration Office and will be published on www.glanbia.com
(http://www.glanbia.com) . A copy of the full statutory financial statements
in respect of the financial year ended 4 January 2025 will be annexed to the
Company's annual return for 2025. The auditors of the Company have made a
report, without any qualification, on their audit of the financial statements
of the Group and Company in respect of the financial year ended 4 January
2025, which were approved by the Directors on 25 February 2025. A copy of the
financial statements of the Group in respect of the year ended 30 December
2023 has been annexed to the Company's annual return for 2024 and filed with
the Companies Registration Office and is available on www.glanbia.com
(http://www.glanbia.com) .
Glossary of non-IFRS performance measures
The Group reports certain performance measures including key performance
indicators that are not defined under IFRS but which represent additional
measures used by the Board of Directors and the Glanbia Operating Executive in
assessing performance and for reporting both internally and to shareholders
and other external users. The Group believes that the presentation of these
non-IFRS performance measures provides useful supplemental information which,
when viewed in conjunction with our IFRS financial information, provides
readers with an enhanced understanding of the underlying financial and
operating performance of the Group.
These non-IFRS performance measures may not be uniformly defined by all
companies and accordingly they may not be directly comparable with similarly
titled measures and disclosures by other companies. None of these non-IFRS
performance measures should be considered as an alternative to financial
measures drawn up in accordance with IFRS.
The principal non-IFRS performance measures used by the Group are defined
below with a reconciliation of these measures to IFRS measures where
applicable. Please note where referenced "GIS" refers to Group income
statement, "GBS" refers to Group balance sheet, and "GSCF" refers to Group
statement of cash flows. EBITDA and EBITA references throughout the annual
report are on a pre-exceptional basis unless otherwise indicated.
The definition of exceptional items is disclosed in note 2 of the 2024
Financial Statements. For an analysis of exceptional items refer to note 3 of
the financial statements.
While the Group reports its results in US dollar, it generates a proportion of
its earnings in currencies other than US dollar, in particular euro. Constant
currency reporting is used by the Group to eliminate the translational effect
of foreign exchange on the Group's results. To arrive at the constant currency
year-on-year change, the results for the prior year are retranslated using the
average exchange rates for the current year and compared to the current year
reported numbers. The principal average exchange rates used to translate
results for 2024 and 2023 are outlined in note 2 of the 2024 Financial
Statements.
As announced on 16 August 2023, the Group has amended the commercial
arrangements associated with its US joint venture effective 1 January 2024
(see note 1 of the financial statements for further details). Revenue for the
Glanbia Nutritionals segment and total revenue presented below is on a pro
forma basis as if the terms of this amendment were effective from the
beginning of 2023. Prior year pro forma revenue numbers are provided for
illustrative purposes and to aid comparability to 2024 reported revenue.
G 1. Revenue measures
G1.1 Constant currency and like-for-like revenue change
GN and GPN like-for-like total revenue represents the sales
increase/(decrease) year-on-year, excluding the incremental revenue
contributions from current year and prior year acquisitions and disposals, and
the impact of a 53rd week (when applicable), on a pro forma and constant
currency basis.
Reference 2024 2023 2023 2023 Constant Like-for-like
Reported Reported Pro forma Constant currency change
$m $m $m currency* change (G 1.2)* (G 1.2)*
$m % %
Nutritional Solutions Note 2 1,007.7 1,008.5 885.4 883.7 14.0% 4.0%
US Cheese Note 2 1,025.3 2,621.3 948.8 948.8 8.1% 5.9%
Glanbia Nutritionals Note 2 2,033.0 3,629.8 1,834.2 1,832.5 10.9% 4.9%
GPN Americas Note 2 1,161.0 1,166.7 1,166.7 1,166.4 (0.5%) (2.3%)
GPN International Note 2 645.7 628.9 628.9 631.4 2.3% 0.4%
Glanbia Performance Nutrition Note 2 1,806.7 1,795.6 1,795.6 1,797.8 0.5% (1.3%)
Revenue GIS 3,839.7 5,425.4 3,629.8 3,630.3 5.8% 1.8%
* Based on pro forma figures.
G 1.2 Volume and pricing increase/(decrease)
Volume increase/(decrease) represents the impact of sales volumes within the
revenue movement year-on-year, excluding volume from acquisitions and
disposals, and the impact of a 53rd week (when applicable), on a pro forma and
constant currency basis.
Pricing increase/(decrease) represents the impact of sales pricing (including
trade spend) within revenue movement year-on-year, excluding acquisitions and
disposals, on a pro forma and constant currency basis.
Reconciliation of volume and pricing increase/(decrease) to constant currency
revenue change:
Volume Price Like-for-like Acquisitions / (disposals) 53rd week adjustment Constant
increase/ (decrease) increase/ change currency
(decrease) (G 1.1) revenue change
(G 1.1)
Nutritional Solutions 3.6% 0.4% 4.0% 7.7% 2.3% 14.0%
US Cheese 0.1% 5.8% 5.9% - 2.2% 8.1%
Glanbia Nutritionals 1.7% 3.2% 4.9% 3.7% 2.3% 10.9%
Glanbia Performance Nutrition 2.9% (4.2%) (1.3%) - 1.8% 0.5%
2024 increase/(decrease) % - revenue 2.3% (0.5%) 1.8% 2.0% 2.0% 5.8%
G 2. EBITDA and EBITDA margin % (pre-exceptional)
EBITDA (pre-exceptional) is defined as earnings before interest, tax,
depreciation (net of grant amortisation) and amortisation. Refer to note 2 of
the financial statements for the reconciliation of EBITDA (pre-exceptional) to
IFRS measures.
EBITDA margin % (pre-exceptional) is defined as EBITDA (pre-exceptional) as a
percentage of revenue. Refer to G 1 for revenue and EBITDA (pre-exceptional)
is disclosed below.
Reference 2024 2023 2023 Constant
Reported Reported Constant currency
$m $m currency change
$m %
Nutritional Solutions 200.0 157.3 157.2 27.2%
US Cheese 45.9 53.8 53.8 (14.7%)
Glanbia Nutritionals Note 2 245.9 211.1 211.0 16.5%
Glanbia Performance Nutrition Note 2 305.4 282.3 282.1 8.3%
EBITDA (pre-exceptional) Note 2, G 7.4 551.3 493.4 493.1 11.8%
G 3. EBITA (pre-exceptional)
EBITA (pre-exceptional) is defined as earnings before interest, tax and
amortisation. EBITA (pre-exceptional) is one of the performance conditions in
Glanbia's Annual Incentive Plan for Senior Management.
Reference 2024 2023
$m $m
EBITDA (pre-exceptional) G 2, G 7.4 551.3 493.4
Depreciation* (73.1) (69.4)
EBITA (pre-exceptional) 478.2 424.0
* Includes depreciation of property, plant and equipment of $52.2 million (2023:
$49.7 million), reversal of an impairment of property, plant and equipment of
$1.0 million (2023: nil) and depreciation of right-of-use assets of $21.9
million (2023: $19.7 million).
G 4. Constant currency earnings per share ("EPS") measures
G 4.1 Constant currency basic EPS
Basic EPS is an IFRS measure and defined in note 6 of the financial
statements. Basic EPS has also been calculated on a continuing basis in line
with the presentation of continuing and discontinued operations in the GIS.
Profit/(loss) after tax in this performance measure refers to the amount
attributable to equity holders of the Company.
Reference 2024 2023 2023
Reported Reported Constant
$m $m currency
$m
Profit after tax GIS 164.7 344.4 347.7
Loss after tax - discontinued operations GIS - 3.2 3.2
Profit after tax - continuing operations G 4.2 164.7 347.6 350.9
Weighted average number of ordinary shares in issue (thousands) Note 6 260,554 266,548 266,548
Basic EPS (cent) - continuing operations Note 6 63.21 130.41 131.65
Basic EPS (cent) Note 6 63.21 129.21 130.45
Constant currency change - continuing operations (52.0%)
Constant currency change (51.5%)
G 4.2 Constant currency adjusted EPS
Adjusted EPS is defined as the profit after tax attributable to the equity
holders of the Company, before exceptional items and intangible asset
amortisation and impairment (excluding software amortisation), net of related
tax, divided by the weighted average number of ordinary shares in issue during
the year, excluding ordinary shares purchased by the Group and held as own
shares (see note 9). The Group believes that adjusted EPS provides useful
information of underlying performance as it excludes exceptional items (net of
related tax) that are not related to ongoing operational performance and
intangible asset amortisation, which allows for comparability of companies
that grow by acquisition to those that grow organically. Adjusted EPS has also
been calculated on a continuing basis in line with the presentation of
continuing and discontinued operations in the GIS.
Adjusted EPS growth on a constant currency basis is one of the performance
conditions in Glanbia's Annual Incentive Plan and in Glanbia's Long-term
Incentive Plan.
Reference 2024 2023 2023
Reported Reported Constant
$m $m currency
$m
Profit after tax from continuing operations G 4.1 164.7 347.6 350.9
Exceptional charge/(gain) - continuing operations GIS 145.6 (49.6) (53.5)
Profit after tax from continuing operations (pre-exceptional) 310.3 298.0 297.4
Amortisation of intangible assets (excluding software amortisation) net of 54.5 52.1 52.2
related tax of $8.7 million (2023: $7.8 million, 2023 constant currency: $7.8
million) - continuing operations
Adjusted net income - continuing operations 364.8 350.1 349.6
Loss after tax from discontinued operations GIS - (3.2) (3.2)
Exceptional charge - discontinued operations GIS - 3.2 3.2
Profit from discontinued operations (pre-exceptional) GIS - - -
Adjusted net income 364.8 350.1 349.6
Weighted average number of ordinary shares in issue (thousands) Note 6 260,554 266,548 266,548
Adjusted EPS (cent) - continuing operations 140.03 131.37 131.17
Adjusted EPS (cent) G 9 140.03 131.37 131.17
Constant currency growth - continuing operations 6.8%
Constant currency growth 6.8%
G 5. Financing measures
G 5.1 Net debt
Refer to note 30(a) of the 2024 Financial Statements and note 8 of the
financial statements for the definition and composition of net debt at the end
of the reporting period respectively.
G 5.2 Net debt: adjusted EBITDA
Refer to note 30(a) of the 2024 Financial Statements for the definition of net
debt: adjusted EBITDA.
Reference 2024 2023
$m $m
Net debt Note 8 436.0 248.7
EBITDA G 2 551.3 493.4
Adjustments in line with lenders' facility agreements (15.6) 6.8
Adjusted EBITDA 535.7 500.2
Net debt: adjusted EBITDA 0.81 times 0.50 times
G 5.3 Adjusted EBIT: adjusted net finance cost
Refer to note 30(a) of the 2024 Financial Statements for the definition of
adjusted EBIT: adjusted net finance cost.
Reference 2024 2023
$m $m
Operating profit GIS 234.7 392.2
Exceptional charge/(credit) GIS 161.4 (47.8)
Operating profit (pre-exceptional) G 6, GIS 396.1 344.4
Dividends received from related parties GSCF 5.0 32.0
IFRS 16 adjustment - interest expense on lease liabilities Note 4 (3.0) (2.7)
Adjusted EBIT 398.1 373.7
Net finance costs Note 4 26.8 12.3
Adjustments (3.0) (2.5)
Adjusted net finance cost 23.8 9.8
Adjusted EBIT: adjusted net finance cost 16.7 times 38.1 times
G 5.4 Average interest rate
The average interest rate is defined as adjusted net finance costs divided by
the average net debt during the reporting period. Refer to G 5.3 and G 5.2 for
net finance costs and net debt respectively.
G 6. Return on capital employed ("ROCE")
ROCE is defined as the Group's earnings before interest, and amortisation (net
of related tax) plus the Group's share of the results of joint ventures after
interest and tax divided by capital employed. Capital employed comprises the
sum of the Group's total assets plus cumulative intangible asset amortisation
and impairment less current liabilities and deferred tax liabilities excluding
all borrowings and lease liabilities, retirement benefit assets, cash and
acquisition related contingent consideration and contract options. It is
calculated by taking the average of the relevant opening and closing balance
sheet amounts. ROCE has also been calculated on a continuing basis in line
with the presentation of continuing and discontinued operations in the GIS.
ROCE is one of the performance conditions in Glanbia's Long-term Incentive
Plan.
Reference 2024 2023
$m $m
Operating profit (pre-exceptional) G 5.3 396.1 344.4
Tax on operating profit (63.4) (48.2)
Amortisation and impairment of intangible assets net of related tax of $13.7m 68.4 66.9
(2023: $12.7m) (pre-exceptional)
Share of results of joint ventures accounted for using the equity method GIS 0.1 12.5
(pre-exceptional)
Return - continuing operations 401.2 375.6
Loss after tax from discontinued operations GIS - (3.2)
Exceptional charge - discontinued operations GIS - 3.2
Profit after tax from discontinued operations (pre-exceptional) GIS - -
Return 401.2 375.6
3,311.9 3,068.2
Capital employed before adjustments (a)
Adjustment for acquisitions (b) 110.9 (23.4)
Adjustment for joint venture held for sale (b) - (65.4)
Adjustment for disposal of assets held for sale (b) - (9.8)
Capital employed after adjustments 3,422.8 2,969.6
3,245.5 3,079.2
Average capital employed - continuing operations
Average capital employed 3,245.5 3,079.2
Return on capital employed - continuing operations 12.4% 12.2%
Return on capital employed 12.4% 12.2%
(a) Capital employed before adjustments
Reference 2024 2023
$m $m
Total assets GBS 3,874.5 3,799.1
Current liabilities GBS (1,045.9) (880.5)
Deferred tax liabilities GBS (104.6) (137.9)
Liabilities held for sale GBS (8.6) -
Less: cash and cash equivalents GBS (417.0) (413.7)
Less: current financial liabilities (borrowings) GBS 300.8 108.9
Less: short term lease liabilities GBS 20.8 20.1
Less: retirement benefit assets GBS (12.0) (8.2)
Plus: accumulated amortisation and impairment 703.9 580.4
Capital employed before adjustments 3,311.9 3,068.2
(b) Adjustment for acquisitions, joint ventures and assets held for sale
In years where the Group makes significant acquisitions or disposals, the ROCE
calculation is adjusted appropriately, to ensure the acquisition or disposal
are equally time apportioned in the numerator and the denominator. For
information on acquisitions and assets held for sale, refer to notes 13 and 12
respectively.
G 7. Cash flow measures
G 7.1 Operating cash flow ("OCF")
OCF is defined as EBITDA (pre-exceptional) net of business-sustaining capital
expenditure and working capital movements, excluding exceptional cash flows.
Reconciliation of OCF to cash generated from operating activities before
exceptional items:
Reference 2024 2023
$m $m
Cash generated from operating activities before exceptional items GSCF 531.6 491.4
Less: business-sustaining capital expenditure G 7.4, G 12(b) (28.7) (22.5)
Non-cash items not adjusted in computing OCF:
- Share-based payment expense Note 11 (18.2) (24.5)
- Difference between pension charge and cash contributions Note 11 (0.1) 2.7
- Other items 0.5 (1.2)
OCF G 7.4 485.1 445.9
G 7.2 Free cash flow ("FCF")
FCF is calculated as the net cash flow in the year before the following items:
purchase of own shares under share buyback, strategic capital expenditure,
dividends paid to Company shareholders, loans/investments in related parties,
exceptional costs paid, payment for acquisition of subsidiaries, proceeds
received on disposals. Refer to G 7.1 and G 7.4 for the reconciliation of FCF
to GSCF.
G 7.3 Operating cash conversion ("OCF Conversion")
OCF conversion is defined as OCF divided by EBITDA (pre-exceptional). OCF
conversion is a measure of the Group's ability to convert adjusted trading
profits into cash and is an important metric in the Group's working capital
management programme. The measure is a key element of Executive Director and
senior management remuneration.
G 7.4 Summary cash flow
The summary cash flow is prepared on a different basis to the GSCF and as such
the reconciling items between EBITDA and net debt movement may differ from
amounts presented in the GSCF. The summary cash flow details movements in net
debt while the GSCF details movements in cash and cash equivalents. The
reconciliations of various reconciling items in the summary cash flow to IFRS
information are presented separately in G 12 for a clear presentation of
information.
Reference 2024 2023
$m $m
EBITDA (pre-exceptional) G 2 551.3 493.4
Movement in working capital (pre-exceptional) G 12(a) (37.5) (25.0)
Business-sustaining capital expenditure G 7.1, G 12(b) (28.7) (22.5)
Operating cash flow G 7.1 485.1 445.9
Net interest and tax paid G 12(c) (65.7) (51.8)
Payments of lease liabilities GSCF (23.7) (19.9)
Dividends received from related parties GSCF 5.0 32.0
Other inflows/(outflows) G 12(d) 1.8 (16.4)
Free cash flow 402.5 389.8
Strategic capital expenditure G 12(b) (58.4) (51.7)
Dividends paid to Company shareholders GSCF (104.4) (97.2)
Loans/investment in related parties G 12(e) - 67.8
Purchase of own shares under share buyback G 12(f) (111.4) (108.7)
Exceptional cash paid G 12(g) (22.7) (13.5)
Acquisitions/disposals G 12(h) (297.0) 59.8
Net cash flow (191.4) 246.3
Exchange translation 2.4 (5.5)
Cash acquired on acquisition Note 13 1.7 0.5
Net debt movement (187.3) 241.3
Opening net debt (248.7) (490.0)
Closing net debt Note 8 (436.0) (248.7)
G 8. Effective tax rate
The effective tax rate is defined as the pre-exceptional income tax charge
divided by the profit before tax less share of results of joint
ventures.
Reference 2024 2023
$m $m
Income tax GIS 43.3 44.7
Exceptional tax credit GIS 15.8 1.8
Income tax (pre-exceptional) GIS 59.1 46.5
Profit before tax - continuing operations GIS 208.0 392.4
Exceptional charge/(credit) GIS 161.4 (47.8)
Profit before tax (pre-exceptional) - continuing operations GIS 369.4 344.6
Less: share of results of joint ventures GIS (0.1) (12.5)
369.3 332.1
Effective tax rate 16.0% 14.0%
G 9. Dividend payout ratio
Dividend payout ratio is defined as the US dollar equivalent annual dividend
per ordinary share divided by the Adjusted EPS. US dollar equivalent dividend
is based on the actual dividend recommendation/payment in euro, retranslated
to US dollar at the average exchange rate in the year. The dividend payout
ratio provides an indication of the value returned to shareholders relative to
the Group's total earnings.
Reference 2024 2023
Adjusted EPS G 4.2 $ 140.03c $ 131.37c
Dividend recommended/paid per ordinary share in euro € 38.97c € 35.43c
Equivalent US dollar dividend translated at average rate for the year $ 42.15c $ 38.32c
Dividend payout ratio 30.1% 29.2%
G 10. Total shareholder return ("TSR")
TSR represents the change in the capital value of a listed quoted company over
a period, plus dividends reinvested, expressed as a plus or minus percentage
of the opening value. TSR was one of the performance conditions in Glanbia's
Long-term Incentive Plan.
G 11. Compound annual growth rate ("CAGR")
The compound annual growth rate is the annual growth rate over a period of
years. It is calculated on the basis that each year's growth is
compounded.
G 12. Cash flow items
This section presents reconciliations of various reconciling items in the
summary cash flow (G 7.4) to IFRS information.
(a) Movement in working capital
Reference 2024 2023
$m $m
Movement in working capital (61.3) (47.7)
Net write down of inventories (pre-exceptional) Note 11 27.7 18.4
Non-cash movement in allowance for impairment of receivables Note 11 (0.3) (3.8)
Non-cash movement in provisions Note 11 (2.1) 7.4
Non-cash movement on cross currency swaps Note 11 (1.5) 0.7
Movement in working capital (pre-exceptional) G 7.4 (37.5) (25.0)
(b) Capital expenditure
Business-sustaining capital expenditure: the Group defines business-sustaining
capital expenditure as the expenditure required to maintain/replace existing
assets with a high proportion of expired useful life. This expenditure does
not attract new customers or create the capacity for a bigger business. It
enables the Group to keep operating at current throughput rates but also keep
pace with regulatory and environmental changes as well as complying with new
requirements from existing customers.
Strategic capital expenditure: the Group defines strategic capital expenditure
as the expenditure required to facilitate growth and generate additional
returns for the Group. This is generally expansionary expenditure beyond what
is necessary to maintain the Group's current competitive position.
Reference 2024 2023
$m $m
Business-sustaining capital expenditure G 7.1, G 7.4 (28.7) (22.5)
Strategic capital expenditure G 7.4 (58.4) (51.7)
Total capital expenditure (87.1) (74.2)
Purchase of property, plant and equipment GSCF (54.3) (42.0)
Purchase of intangible assets GSCF (32.8) (32.2)
Total capital expenditure per GSCF (87.1) (74.2)
(c) Net interest and tax paid
Reference 2024 2023
$m $m
Interest received GSCF 6.1 10.7
Interest paid (including interest paid on lease liabilities) GSCF (31.3) (22.0)
Tax paid GSCF (40.5) (40.5)
Net interest and tax paid G 7.4 (65.7) (51.8)
(d) Other inflows/(outflows)
Reference 2024 2023
$m $m
Share-based payment expense Note 11 18.2 24.5
Difference between pension charge and cash contributions Note 11 0.1 (2.7)
(Profit)/loss on disposal of property, plant and equipment Note 11 (0.3) 1.2
Profit on disposal of other financial assets Note 11 (0.7) -
Loss on disposal of intangible assets Note 11 0.5 -
Purchase of own shares by Employee Share (Scheme) Trust (18.4) (39.4)
Proceeds from disposals/redemption of FVOCI financial assets GSCF 2.4 -
Total other inflows/(outflows) G 7.4 1.8 (16.4)
(e) Loans/investments in related parties
Reference 2024 2023
$m $m
Loans advanced to Leprino Foods EU Limited GSCF - (3.5)
Proceeds on repayment of loans advanced to Leprino Foods EU Limited GSCF - 71.3
Total loans/investments in related parties G 7.4 - 67.8
(f) Purchase of own shares
Reference 2024 2023
$m $m
Purchase of own shares under share buyback G 7.4 (111.4) (108.7)
Purchase of own shares by Employee Share (Scheme) Trust G 12(d) (18.4) (39.4)
Total purchase of own shares GSCF (129.8) (148.1)
(g) Exceptional cash paid
Reference 2024 2023
$m $m
Cash outflow related to exceptional items - operating activities GSCF (22.7) (11.8)
Cash outflow related to exceptional items - investing activities GSCF - (1.7)
Total exceptional cash paid G 7.4 (22.7) (13.5)
(h) Acquisitions/disposals
Reference 2024 2023
$m $m
Payment for acquisition of subsidiaries Note 13 (299.7) (71.9)
Proceeds from disposal of property, plant and equipment GSCF 2.7 -
Proceeds from disposal of Leprino Foods (exceptional) GSCF - 123.4
Proceeds from disposal of assets and liabilities held for sale (exceptional) GSCF - 8.6
Payment for acquisition of NCI GSCF - (0.3)
Total acquisitions/disposals G 7.4 (297.0) 59.8
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